IM IFIC Bank 3rd Sub Bond

INFORMATION MEMORANDUM
3rd Subordinated Floating Rate Bond of BDT 5,000 Million

for International Finance Investment and Commerce Bank Limited
Issuer: International Finance Investment and Commerce Bank

Limited (IFIC Bank Limited)
Head Office: IFIC Tower
61 Purana Paltan
Dhaka - 1000, Bangladesh
Trustee: Sena Kalyan Insurance Company Limited

Type of Security: Subordinated Unsecured Floating Rate Bond
Total Face Value: Up to BDT 5,000 Million
Face Value of Each Bond is: BDT 10,000,000

Issue Price of Each Bond is: BDT 10,000,000
Number of Securities: 500
Total Issue Amount: BDT 5,000,000,000
Coupon Rate/discount rate and YTM: Floating

Issue Date of IM: 1 June 2022
Credit Rating status of the Issue:

Long Term Rating: AA3(Hyb) Outlook: Stable
“If you have any query about this document, you may consult the issuer and the trustee.”
Mandated Lead Arranger

Standard Chartered Bank
ARRANGER’S DISCLAIMER
IFIC Bank Limited (the “Issuer”) has authorized Standard Chartered Bank (“Standard Chartered” or the
“Arranger”) to distribute this Information Memorandum in connection with the proposed transaction
outlined in it (the “Transaction”) and the bond proposed to be issued in the Transaction (the “Bond”).
“Standard Chartered Bank” means Standard Chartered and any group, subsidiary, associate or affiliate
of Standard Chartered and their respective directors, representatives or employees and/or any persons
connected with them.
Nothing in this Information Memorandum constitutes an offer of securities for sale in the United States
or any other jurisdiction where such offer or placement would be in violation of any law, rule or regulation.
The Issuer has prepared this Information Memorandum and the Issuer is solely responsible for its
contents. The Issuer will comply with all laws, rules and regulations and has obtained all regulatory,
governmental and corporate approvals for the issuance of the Bond. All the information contained in this
Information Memorandum has been provided by the Issuer or is from publicly available information, and
such information has not been independently verified by the Arranger. No representation or warranty,
expressed or implied, is or will be made, and no responsibility or liability is or will be accepted, by the
Arranger or its affiliates for the accuracy, completeness, reliability, correctness or fairness of this
Information Memorandum or any of the information or opinions contained therein, and the Arranger
hereby expressly disclaim, to the fullest extent permitted by law, any responsibility for the contents of
this Information memorandum and any liability, whether arising in tort or contract or otherwise, relating
to or resulting from this Information Memorandum or any information or errors contained therein or any
omissions therefrom. By accepting this Information Memorandum, you agree that the Arranger will not
have any such liability.
You should carefully read and retain this Information Memorandum. However, you are not to construe
the contents of this Information Memorandum as investment, legal, accounting, regulatory or tax advice,
and you should consult with your own advisors as to all legal, accounting, regulatory, tax, financial and
related matters concerning an investment in the Bond.
2
ISSUER’S DISCLAIMER
This Information Memorandum is neither a prospectus nor a statement in lieu of prospectus. The issue
of Unsecured Subordinated Floating Rate Bond is being made strictly on a private placement basis.
Multiple copies hereof given to the same entity shall be deemed to be given to the same person and
shall be treated as such. It does not constitute and shall not be deemed to constitute an offer or an
invitation to subscribe to the bond issue to the public in general. Apart from this Information
Memorandum, no information memorandum or prospectus has been prepared in connection with the
offering of this issue.
This Information Memorandum has been prepared to provide general information about the issuer to
potential investors to whom it is addressed and who are willing and eligible to subscribe to the bond
issue. This Information Memorandum does not purport to contain all the information that any potential
investor may require. Neither does this Information Memorandum nor any other information supplied in
connection with the bond issue is intended to provide the basis of any credit or other evaluation and any
recipient of this Information Memorandum should not consider such receipt a recommendation to
purchase any bonds. Each potential investor contemplating the purchase of any bonds should make
his/her own independent investigation of the financial condition and affairs of the issuer and his/her own
appraisal of the creditworthiness of the issuer.
Potential investors should consult their own financial, legal, tax, and other professional advisors as to
the risks and investment considerations arising from an investment in the bonds and should possess the
appropriate resources to analyze such investment and the suitability of such investment to such
investor’s particular circumstances.
The information relating to the company contained in this Information Memorandum is believed by the
issuing company to be accurate in all respects as to the date hereof.
It is the responsibility of potential investors to also ensure that they will sell/transfer these Bonds in strict
accordance with this Information Memorandum and other applicable laws. None of the intermediaries or
their agents or advisors associated with this issue undertake to review the financial condition or affairs
of the issuer during the life of the arrangements contemplated by this Information Memorandum or have
any responsibility to advise any investor or potential investor in the bonds of any information available
with or subsequently coming to the attention of the intermediaries, agents or advisors.
No person has been authorized to give any information or to make any representation not contained or
incorporated by reference in this Information Memorandum or in any material made available by the
issuer to any potential investor pursuant hereto and, if given or made, such information or representation
must not be relied upon as having been authorized by the issuer.
The contents of this Information Memorandum are intended to be used only by those potential investors
to whom it is distributed. It is not intended for distribution to any other person and should not be
reproduced by the recipient.
The person who is in receipt of this Information Memorandum shall maintain utmost confidentiality
regarding the contents of this Information Memorandum and shall not reproduce or distribute in whole or
part or make any announcement in public or to a third party regarding its contents, without the prior
written consent of the issuer till the time the Information Memorandum comes within public domain.
3
Notwithstanding the foregoing, a bondholder may provide this Information Memorandum to a potential
investor for the sole purpose of transferring the bonds.
Each person receiving this Information Memorandum acknowledges that:
 Such person has been afforded an opportunity to request and to review and has reviewed and
received this Information Memorandum and all additional information considered by an individual
to be necessary to verify the accuracy or to supplement the information herein; and
 Such person has not relied on any intermediary that may be associated with the issuance of the
bonds in connection with his/her investigation of the accuracy of such information or his/her
investment decision.
The issuer does not undertake to update the Information Memorandum to reflect subsequent events after
the date of the Information Memorandum and thus it should not be relied upon with respect to such
subsequent events without first confirming its accuracy with the issuer. Neither the delivery of this
Information Memorandum nor any sale of bonds made hereunder shall, under any circumstances,
constitute a representation or create any implication that there has been no change in the affairs of the
issuer since the date hereof.
This Information Memorandum does not constitute, not may it be used for or in connection with, an offer
or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorized or to any
person to whom it is unlawful to make such an offer or solicitation. No action is being taken to permit an
offering of the bonds or the distribution of this Information Memorandum in any jurisdiction where such
action is required. The distribution of this Information Memorandum and the offering and sale of the bonds
may be restricted by law in certain jurisdiction. Persons into whose possession this Information
Memorandum comes are required to inform themselves about and to observe any such restrictions.
4
CONTACT LIST
STANDARD CHARTERED BANK: LEAD ARRANGER
Md. Maroof Ur Rahman Mazumder Nasreen Rehman

Executive Director & Head of Capital Markets, Executive Director & Head of Banks, Bangladesh
Bangladesh
Level 4, 67 Gulshan Avenue, Dhaka – 1212
Level 3, 67 Gulshan Avenue, Dhaka – 1212 Phone : + 880 2 8833003-4 ext. 54437
Phone : +880 2 8833003-4 ext. 53031 Mobile : + 88 018 33362088
Fax : +880 2 8837810 e-mail : nasreen.rehman@sc.com
Mobile : +880 171 3009646
E-mail : md-maroofur.rahman@sc.com
IFIC BANK LIMITED: ISSUER
Dilip Kumar Mandal Muhammad Sami Ul Hoque

Chief Financial Officer Head of Financial & Regulatory Reporting
IFIC Tower, 61 Purana Paltan, Dhaka-1000 IFIC Tower, 61 Purana Paltan, Dhaka-1000
Phone : +8809666716250 Ext-120 Phone : +8809666716250 Ext-196
Mobile : +8801713069990 Mobile :+8801716337433
E-mail : kumar.dilip@ificbankbd.com E-mail : sami.hoque@ificbankbd.com
SENA KALYAN INSURANCE COMPANY LIMITED: TRUSTEE

Pronab Kumar Saha
Senior Vice President & Head of Underwriting
Department
Head Office: SKS Tower (12th Floor)

7 VIP Road, Mohakhali, Dhaka-1206
Phone: +880 2 55058455-7
Fax: +880 2 55058458
Email: pronab@senakalyanicl.com
5
16 November, 2021
Mr. Md. Maroof ur Rahman Mazumder

Executive Director & Head of Capital Markets
Standard Chartered Bank
67, Gulshan Avenue
Gulshan, Dhaka-1212
LETTER OF AUTHORITY
Dear Sir,
We refer to the Subordinated Floating Rate Bond Issue of BDT 5,000 Million (the “Bonds”) which, you (the Arranger)
is arranging at our request, the principal terms and conditions of which are set forth in the attached Information
Memorandum (the "Information Memorandum"):
IFIC Bank Limited (the “Issuer”), the undersigned, confirms that:
a) Except as otherwise provided in the Information Memorandum, all the information contained therein relating to
the company and its business has been provided to you by us;
b) We confirm that we are fully responsible for all material statements, facts and opinions in the Information
Memorandum.
c) To the best of our knowledge the Information Memorandum does not omit any fact in the context of the proposed
facility although the Information Memorandum does not purport to be all the information which investors may
require in order to evaluate the issuer’s business.
d) The forecasts contained in the Information Memorandum were made after due and careful consideration on our
part based on the best information available to us and we consider them fair and reasonable on the
circumstances now prevailing; and
e) The information (including forecast) in the Information Memorandum fairly represents the basis on which the
Issuer and its shareholders are proceeding with the business.
The Issuer does not however make any express of implied representation of warranty as to the fairness, accuracy;
or completeness of the information (including statements of opinion) or forecasts. Appropriate warranties or other
undertakings in relation to the information and forecasts will be given on the bond documents and no representations
or warranties other than those specially set forth on the bond documents shall be deemed to be given to any party.
We hereby request and authorize you to distribute this Information Memorandum to prospective investors who may
subscribe the Bonds. We understand that as per local practice, no confidentiality agreement will be signed between
the Arranger and the prospective participants (including their relevant staff members and board of directors) to whom
the Information Memorandum shall be placed and we confirm our consent to the distribution of “Information
Memorandum” and other relevant documents to prospective investors distributed in this manner.
Yours sincerely,
s/d-
Shah A Sarwar
Managing Director & CEO
IFIC Bank Limited
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2. TABLE OF CONTENTS
Sl. No. Page No.
3 Report to the Eligible Investors 8

4 Risk Factors and Management's Perception about the Risks 9
5 Detailed Description and Information of Issuer’s Application 14
6 Detail Plan of the Utilization of Proceeds 17
7 Features of the Debt Security to be Issued 18
Description of Collateral Security and Type of Charges to be
8 21
created against Issue
9 Rights & Obligations of the Issuer 22
10 Rights & Obligations of the Trustee 25
11 Rights & Obligations of the Arranger 30
12 Rights & Obligations of the Eligible Investors 31
13 Description of the Issuer: IFIC Bank Limited 32
Audited Financial Statements as at 30 September 2021 of the
14 51
Issuer, IFIC Bank Limited
15 Brief Overview & Comparative Financial Statements 56
16 Ratio Analysis for Last Three Years 60
17 Credit Rating Summary of the Issue and Issuer 61
18 Latest Default Matrix and Transition Statistics of CRC 65
19 Description of the Trustee 66
20 Modus Operandi of the Issue 70
21 Declaration about the responsibility of the Directors 71
22 Details of Fees Structure and Expenses 72
Annexure 1: Issue Application as per Schedule A
Annexure 2: Audited Financials as on 30 September 2021
Annexure 3: Credit Rating Report of the Issue
Annexure 4: Due Diligence Certificate of the Trustee
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3. REPORTS TO THE ELIGIBLE INVESTORS
Issuer has obtained information regarding Bangladesh and its economics from various publications made
by the government of Bangladesh and other sources. Although, the Issuer believes that its sources are
reliable, but there is no scope for the Issuer to make verification of information independently by any
independent sources. Issuer has obtained information about the Trustee i.e. Sena Kalyan Insurance
Company Limited from the Trustee and Issuer does not accept any responsibility for the information
contained in the section entitled “The Trustee.” Issuer also does not accept any responsibility for the
information contained in the section entitled “Credit Rating.” We are not making any representation to
you concerning the accuracy or completeness of the information contained in the section “The Trustee”
or in the section “Credit Rating.”
The distribution of this Information Memorandum and the Offering is restricted only in Bangladesh. It is
not intended or made to offer or sale of the Bonds in any other jurisdiction. The offerings will not be
offered to the public at large in Bangladesh, or outside Bangladesh.
We may withdraw this offering at any time, and we reserve the right to reject any offer to purchase the
Bonds in whole or in part and to sell to any prospective investor less than the full amount of the Bonds
sought by such investor.
We have obtained approval of the Bangladesh Securities and Exchange Commission for issue of Bonds
and the distribution of this Information Memorandum through letter No. BSEC/CI/DS-180/2021/838 dated
1 June 2022 and the Bangladesh Bank has given its approval through letter No.
BRPD(BS)661/14B(P)/2021-12309 dated 28 December 2021.
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4. RISK FACTORS AND MANAGEMENT’S PERCEPTION ABOUT THE RISKS
Risk management
Risk is defined by Issuer as risk of potential losses or foregone profits that can be triggered by internal
and external factors. Therefore, the objectives of risk management are identification of potential risks in
our operations and transactions, in our assets, liabilities, income, cost and off–balance sheet exposures
and independent measurement and assessment of such risks and taking timely and adequate measures
to manage and mitigate such risks within a risk-return framework. A summarized position of various
inherent and potential risks, The Issuer is facing, while conducting its business and operations and steps
taken by the Bank to effectively manage and mitigate such risks by management of Issuer are:
a) Interest Rate Risk:

Interest rate risk represents exposures to instruments whose values vary with the level or volatility of
interest rates. These instruments include, but are not limited to loans, debt securities, certain trading
related assets, deposit and borrowings.
Management Perception
IFIC Bank’s goal is to manage interest rate sensitivity so that movements in interest rates do not
significantly adversely affect earnings. Our ALM activities include an overall interest rate risk
management strategy to manage fluctuations in earnings that are caused by interest rate volatility. ALM
activities include monitoring interest rate profile, sensitivity of bank’s earning under different interest rate
scenarios, product pricing decisions including deposit pricing strategies.
b) Exchange Rate Risk:

Foreign exchange risk represents exposures to changes in the values of current holdings and future cash
flows denominated in currencies other than the Bangladeshi Taka. The types of instruments exposed to
this risk include foreign currency denominated loans, future cash flows in foreign currencies arising from
inward remittance, proceeds from export.
IFIC Bank Limited has managed foreign currency risk by keeping the net open position (NOP) within the
limit. Moreover, hedging instrument like currency SWAP is also used to mitigate the currency risk.
c) Non-repayment Risk (credit risk):

Credit risk is the risk of loss that may occur from the failure of any counter party to make required
payments in accordance with agreed terms and conditions and/or deterioration of creditworthiness.
IFIC Bank carries out Credit Risk Management functions through a number of processes to maintain a
healthy loan/credit portfolio. The Bank minimizes the overall risk level through maintaining a diversified
credit portfolio with balanced mix of different sectoral distribution within the prevailing economic condition
of the country. The credit risk management activities are governed by the established credit risk
framework of the Bank supported by Credit Policy Guidelines that encompasses credit approval
processes for all business segments along with the guidelines for post disbursement monitoring and
finally recovery of disbursed loans.
9
An in-depth credit appraisal, Credit Risk Grading of prospective borrower, analysis of information
obtained from Credit Information Bureau (CIB) etc. are carried out at pre-sanction stage. In order to
mitigate non-repayment risk, collateral security and guarantee are obtained. A systematic loan
monitoring process is followed for each loan at the post-disbursement stage.
d) Prepayment, call or refunding risk:

The risk associated with the early unscheduled return of principal on a fixed-income security.
Since there is no option for prepayment, call or refunding, this risk is not associated with this particular
bond.
e) Security Risk:
The risk associated with the default of the collateral used to guarantee repayment of a debt.
Since this is a subordinated or unsecured bond i.e. it is not backed by any asset; this particular risk is
not applicable here.
f) Liquidity Risk:
Liquidity risk arises from the potential inability to meet the contractual and contingent financial
obligations, on or off-balance sheet, as they come due.
IFIC Bank’s primary liquidity management objective is to provide adequate funding for our business
throughout market cycles, including periods of financial stress. To achieve the objective, the bank
analyzes and monitors liquidity risk, maintaining excess liquidity and access diverse funding sources
including its stable deposit base. There is an Asset Liability and Risk Management Committee comprising
members of the Senior Executives headed by the Managing Director & CEO to look into all operational
functions and risk management of the bank.
g) Management Risk:
Management Risk is the risk associated with ineffective, destructive or underperforming management,
which hurts shareholders and the company or fund being managed.
IFIC Bank is one of the leading banking institutions in Bangladesh with a track record of consistent
performance achieved through effective leadership and corporate governance. It has a sound
management system that is not only efficient but also dynamic in taking relevant decision to make the
organization more effective and results oriented. The bank has taken a holistic approach to establish an
interactive system where strategic business objectives are cascaded downwards while business
information is escalated upwards enabling senior management to execute its management and
supervisory function appropriately. Therefore, with a strong leadership on the back, management risks
are not a matter of concern or a vital risk factor for the bank.
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h) Operational Risk:
Operational Risk is the risk of loss arising from the potential that inadequate information system;
technology failures, breaches in internal controls, error, fraud & forgeries, surprises, unforeseen
catastrophes, or other operational problems may result in unexpected losses or reputation problems.
Failure to understand and manage the Operational Risks may greatly increase the possibility that some
risks will go unrecognized and uncontrolled.
IFIC Bank in accordance with the guidance notes of Bangladesh Bank, has established an effective and
integrated risk management framework that consist of six core factors, i.e. Credit Risks; Asset and
Liability/Balance Sheet Risks; Foreign Exchange Risks; Internal Control & Compliance Risks; Money
Laundering Risks and Information & Communication Technology Risk. An appropriate and effective
internal control environment is also in place to ensure that the Bank is managed and controlled in a sound
and prudent manner.
To mitigate Operational Risk the bank has various standard operating procedures, the summary
management of which is summarized as follows:
(i) Board of Directors of the Bank is actively concerned with sound corporate governance and that
understands and diligently discharges its responsibilities by ensuring that the Bank is
appropriately and effectively managed and controlled.
(ii) Bank Management proactively discharges their responsibilities and supervises the activities of
the Bank to manage and operate the Bank in a sound and prudent manner.
(iii) IFIC has adopted/established adequate policies and operational & monitoring procedures.
(iv) IFIC has established an effective management information system to support the organizational
and procedural controls in order to soundly and prudently manage risk exposure.
i) Business Risk:
Business risk is the possibility that the bank will have lower than anticipated profits, or that it will
experience a loss rather than a profit. Business risk is influenced by a lot of factors, including revenue,
costs, competition, business strategies, budget, interest rate and overall economic climate and
government regulations.
As a commercial bank, IFIC Bank has a long-term business growth plan in accordance with the risk taking
capability of the bank. The steering of future profitability is operated through the various management
committees and ultimately by the Board of Directors. To counter and mitigate business risk, mitigation
measures are in place through innovative products and services, speedy responses to customer
complaints, digitization for better customer service, industry and competitor analysis and review of global
economic meltdown with its perceived effects and taking remedial measures.
j) Industry Risk:
Industry Risk is the possibility that a specific industry will not perform up to the expected level or at par.
When problems plague one industry, they affect the individual organization of that particular industry.
Industry risk also refers to the risk of increased competition from foreign and domestic sources leading to
lower revenues, lower interest margins, loss of market share etc. which could have an adverse impact on
the business, financial condition and result of operation.
11
The bank is careful in offering Innovative, convenient and cost effectivefinancial products and services
which in turn minimizes its industry risk exposure. Since its inception the bank contributes significantly in
harnessing deposits by launching different attractive schemes befitting the requirement of different
segments of customers. The bank actively encourages feedback from the customers and regard
complaints as constructive comments that helps to build customer relationships and improve business.
The Bank has also succeeded in diversifying its business portfolio across the thrust sectors of the
economy and always takes special care for superior value addition in its services to clienteles.
k-i) Market Risk:

Market risk is the risk due to which values of assets and liabilities or revenues may be adversely affected
by changes in the market conditions.
This risk is inherent in the financial instruments associated with our operations. Our traditional banking
loan and deposit products are non-trading positions and are generally reposted at amortized cost for
assets or the amount owed for liabilities. However, these positions are still subject to changes in economic
value based on varying market conditions, with one of the primary risks being changed with the levels of
interest rates. The risk of adverse changes in the economic value of non-trading positions arising from
changes in interest rates is managed through ALM activities. Trading positions are reported at market
value with changes reflected in income. Trading positions are subject to various changes in market-based
risk factors. Majority risk is generated by activities in the interest rate, foreign exchange and equity. The
bank has maintained required capital against all market related instruments under Basel-II.
k-ii) Technology-related Risk:

Technology risk is the process of managing the risk associated with implementation of new technology.
If a new technology is not compatible with business function of the company, the company may suffer in
the long run. Risks surrounding Information Technology, such as network failure, software failure, lack of
skills, hacking and viruses and poor system integration causing the potential negative impact on an
organization.
Information Technology risk management plays an important role in protecting the Bank’s information
assets and strengthening the security of the vital component of IT, like Application, Database and Network
infrastructure are an ongoing process. In this direction, the bank took a number of initiatives, and these
were formulation of IT risk management policies, regular IT audits, formation of IT risk management
review team, etc. The bank has a robust digital platform through which a customer can open accounts,
perform online banking, mobile banking and download statements online.
l) Risk related to potential or existing Government Regulations:

The bank operates under Companies Act 1994, the Bank Companies Act 1991, lncome Tax Ordinance
1984, lncome Tax Rules 1984, Value Added Tax (VAT) Act 1991, Value Added Tax (VAT) Rules 1991,
Customs Act 1969, Bangladesh Securities and Exchange Rules 1987 and other related Regulations. The
company also obtained license from Bangladesh Bank as a Bank under the Bank Companies Act, 1991.
12
Any non-compliance with regulatory regime may cause it to be non-compliant, having adverse impact in
the reputation of the bank.
Unless any policy is changed that may negatively and materially affect the industry as a whole, the
business of the bank is expected not to be affected significantly. Financial sector in Bangladesh is a
sector with considerable local demand for differentiated product lines. Therefore, it is highly unlikely that
the Government/Central Bank will initiate any fiscal measure having adverse effect on the growth of the
industry.
m) Risk related to potential changes in Global or National Policies:

Changes in the existing global or national policies can have either positive or negative impacts for the
Bank. The performance of the Bank would be hindered if the national/global political and economic
condition becomes unrestful. Since the risk involved with the potential changes in global or national
policies is a macro factor, it is beyond the control of the bank.
The management of IFIC Bank Limited is watchful about prevailing and upcoming future changes in the
global or national policy and will take prudent action and shall respond appropriately and timely to
safeguard its interest. Due to maintaining a diversified portfolio in major sectors in line with the country's
growth scenario as well as industrial policy, the bank will always endeavor to withstand the unexpected
changes or any such potential threats. Nevertheless, political stability and a congenial business
environment is the best situation in which the Bank will achieve its maximum potential.
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5. DETAILED DESCRIPTION AND INFORMATION OF ISSUER’S
APPLICATION
1. Particulars of the Issuer, IFIC Bank Limited
(a) Name of the Issuer : International Finance Investment and Commerce Bank
Limited (IFIC Bank)
(b) Legal status of the issuer : Public limited company (listed), private commercial bank
(c) Details of Contact Information : Name: Dilip Kumar Mandal FCA
Position: Chief Financial Officer (CFO)
Head Office: IFIC Tower
61 Purana Paltan
Dhaka-1000, Bangladesh
Phone +88009666716250 (Ext:120)
Mobile: +8801713069990
(d) Date of incorporation : October 08, 1976
(e) Date of commencement of : October 08, 1976
business
(f) Authorized capital : BDT 40,000,000,000 as at 30 September 2021
(g) Paid-up capital : BDT 17,008,675,610 as at 30 September 2021
(h) Total equity : BDT 29,861,134,648 as at 30 September 2021
(i) Total liabilities : BDT 379,379,899,825 as at 30 September 2021
(j) Total assets : BDT 409,241,034,472 as at 30 September 2021
(k) Others : Not Applicable
2. Particulars of Issue Manager: Not applicable
3. Particulars of the Issue:
(a) Name of the issue : IFIC Bank 3rd Non-convertible Subordinated Floating
Rate Bond
(b) Type of instruments to be issued : Non-convertible Unsecured Floating Rate Fully
Redeemable Subordinated Bond
(c) Purpose of the issue : The issuance is to generate liquidity to strengthen
Tier II capital of the bank.
(d) Number of securities and total : 500 bonds for total issue amount of BDT
size of the issue to be offered 5,000,000,000
(e) Face value and issue price of : Face value and issue price of each Bond is BDT
securities mentioning discount 10,000,000
or premium thereof
(f) Coupon rate /discount rate and : To Be Determined as a sum of Benchmark Rate &
YTM Margin; however, during the tenor the yield
[benchmark + margin] will be floored at 7.00% and
capped at 9.00%
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(g) Tenor or maturity : 7 years
(h) Details of conversion/ exchange : Not applicable as the bond is non-convertible
option features
(i) Mode of redemption or : 20% of the total bond value to be redeemed at the
conversion/ exchange end of each year starting from 3rd year.
(j) Mode of option (call or put), if : Not applicable as the bond is non-convertible and
any, in case of redemption or fully redeemable
conversion/exchange and
discount or premium thereof
(k) Rate of return : Floating rate bond with YTM floored at 7.00% and
capped at 9.00%
(l) Applicable tax rate : As per applicable Tax Laws of Bangladesh
(m) Default protection mechanism : Not applicable
(details of credit enhancement
arrangement/ agreement,
redemption reserve, sinking
fund etc,), if
Any
(n) Type of collateral securities : Unsecured
being offered, if any
(o) Status of securities holders in : First priority
case of priority of payment
(p) Period within which securities to : Within 6 (six) months of regulatory approval in Single
be issued or Multiple Tranches
(q) Nature of tradability or listing in : As per regulatory approval
the stock exchange(s) (Main
Board / ATB /any other platform,
mentioning the name of the
stock exchange)
(r) Others : Not Applicable
4. Particulars of the Trustee:
(a) Name of the trustee : Sena Kalyan Insurance Company Limited

(b) Paid-up capital of the trustee : BDT 240,000,000 as at December 31, 2020
(c) Net worth of the trustee : BDT 506,203,422 as at December 31, 2020
(d) Name of the issue(s) where : List attached in annexure
performing as trustee
(e) Others : Not Applicable
5. Particulars of the Credit Rating Company:
(a) Name of credit rating company : Credit Rating Agency of Bangladesh (CRAB)
(b) Credit rating status of the issuer : Long Term Rating: AA
or originator Short Term Rating: ST2
15
Outlook: Stable
(c) Credit rating status of the issue : Long Term Rating: AA3 (Hybd)
Outlook: Stable
(d) Date and validity of rating along : Issuer Rating Validity: 30 June 2022
with surveillance rating for the Issue Rating Validity: 30 September 2022
issuer or originator and for the
issue
(e) Latest default rate of the credit : 0% as on 2020
rating company
(f) Average time to default of the : Not Applicable
rated category
(g) Rating trigger, if any : Not Applicable
(h) Others : Not Applicable
6. Particulars of originators, if any: Not applicable
7. Particulars of other contractual parties:
(a) Name of the Mandated Lear : Standard Chartered Bank acting through its
Arranger Bangladesh Branch
(b) Legal status of the Mandated : Foreign Commercial Bank
Lear Arranger
(c) Details of contact information : Md. Maroof Ur Rahman Mazumder
of the Mandated Lear Arranger Executive Director & Head of Capital Markets,
Bangladesh
Address: Level 3, 67 Gulshan Avenue, Dhaka – 1212
Phone: + 88-02-8833003-4 ext. 53031
Fax: + 88-02-8837810
Mobile: + 880171-3009646
E-mail: md-maroofur.rahman@sc.com
(d) Name of the issue managed by : Pubali Bank Limited (Sub- Bond 7,500 Million)
the Mandated Lear Arranger Southeast Bank Limited (Sub-Bond 5,000 Million)
Dutch Bangla bank Limited (Sub-Bond 5,000 Million)
Islami Bank Bangladesh Ltd (Islamic Sub-Bond 6,000
Million)
Trust Bank Limited (Sub-Bond 4,000 Million)
EXIM Bank Ltd (Sub-Bond 5,000 Million)
IFIC Bank Ltd (2nd Sub-Bond 5,000 Million) etc.
(e) Others : Not Applicable
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6. DETAIL PLAN OF THE UTILIZATION OF PROCEEDS
Purpose of Issuance of the IFIC Bank Subordinated Bond:
As on 30 September 2021 IFIC Bank and its Subsidiaries had a Total Regulatory Capital of BDT
41,800.82 Million representing Capital to Risk Weighted Assets (CRAR) of the Bank was 13.90%. On a
solo Basis IFIC Bank Limited had a total Regulatory Capital of 38,570.54 Million representing Capital to
Risk Weighted Assets (CRAR) of the Bank was 13.11%.
The Issuer has planned to raise BDT 5,000,000,000 to generate liquidity to strengthen its Tier II Capital
base. The fund raised through issuing the proposed bonds will provide the Bank additional Capital
cushion in light of risk weighted Capital Adequacy Ratio and will help the Bank to grow its loans and
advance portfolio and to open new branches. The issuance of the Subordinated bonds will allow the Bank
to enhance its capital strength and continue to grow its Balance Sheet.
Utilization of Proceeds:
The bonds will qualify as a part of the Bank’s Tier II capital and will help maintain healthy capital adequacy
ratios in next few years. Besides, the fund will also be used for undertaking general business activities of
the Bank, which include strengthening the loan portfolio of the Bank in Corporate, SME, Retail segments
and treasury operations.
17
7. FEATURES OF THE DEBT SECURITY TO BE ISSUED
a. Basic Features of the Instrument
International Finance Investment and Commerce Bank

Issuer:
Limited (“IFIC Bank Limited” or “IFIC”)
Non-Convertible Floating Rate Subordinated BDT 5,000 Million
The Issue:
Bond
Standard Chartered Bank (“SCB”) and also referred to as the
Mandated Lead Arranger:
“Mandated Lead Arranger” or the “MLA”
Arrangement Basis: Best Efforts / Strictly Non-Underwritten
Purpose: To strengthen Tier II Capital Base
Local Financial Institutions, Insurance Companies, Funds,
Investors:
Corporate etc and any other eligible investors.
Currency: Bangladeshi Taka (“BDT”)
Face Value: Up to BDT 5,000 Million
Denomination of each lot of Bond is indicated at BDT 10,000,000
Denomination:
Face Value
Mode of Placement: Private Placement
Issue Price: 100% at Par
Tenor: 7 years from the Issue Date
Expected Issue Date: December 2021 or any other mutually agreeable date
Status of Debt: Subordinated Non-Convertible
Security: Unsecured
Form: Registered
Listing: Subject to regulatory approval
Credit Rating of the Issue: Long Term Rating: AA3 (Hyb), Outlook: Stable
20% of the total bond value to be redeemed at the end of each
year starting from 3rdyear and the repayment schedule is depicted
below:
Issue Size (BDT) 5,000,000,000
Years Repayment (BDT) Balance
End of 1st year - 5,000,000,000
Redemption Schedule:
End of 2nd year - 5,000,000,000
End of 3rd year 1,000,000,000 4,000,000,000
End of 4th year 1,000,000,000 3,000,000,000
th
End of 5 year 1,000,000,000 2,000,000,000
End of 6th year 1,000,000,000 1,000,000,000
End of 7th year 1,000,000,000 0
Trustee: Sena Kalyan Insurance Company Limited
To Be Determined as a sum of Benchmark Rate & Margin;
However, during the tenor the yield [benchmark + margin] will be
Coupon Rate:
floored at 7.00% and capped at (benchmark + margin) 9.00%.
Subject to approval from the regulatory authorities
18
Benchmark Rate: The Benchmark rate shall be determined by
following method:
Average of most recent month’s published highest fixed

deposit rates (6 months tenor) of all Private Commercial Banks
(excluding Islami banks and Foreign Banks). The issuer’s 6
months tenor deposit rate to be considered at the time of
calculating the average. The published deposit rate to be
Benchmark Rate: taken from Bangladesh Bank sources. This will be fixed semi-
annually.
The Benchmark rate will be fixed by the Trustee semi-annually on

(“Interest Reset Date”) the immediately preceding business day of
the issuance and afterwards semi-annually throughout the tenor of
the bond. For avoidance of doubt, the Benchmark Rate shall be
calculated by the Trustee and notified to the Issuer and all
Investors on every Interest Reset Date.
Margin: 2.00%
Freely transferable subject to the terms and conditions of the Bond
Transferability/Liquidity:
documents.
Prepayment, Call,
Refunding, Conversion Not applicable
features:
Incremental charge at the rate of 2% per annum payable by the
Issuer to the Bondholders above the amount to be paid by the
Late Redemption: Issuer to the Bondholders on the Redemption Date for failure of
the Issuer to make payment to the Bondholders on the Redemption
Date.
Arrangement Fee: 0.50% of the Face Value Amount of the Bonds.
Trustee Fee: BDT 300,000 plus applicable VAT for the 1st year
and BDT 250,000 plus applicable VAT per annum for subsequent
years till final redemption of bond
Cost Related to the Issue: Credit Rating Fee: BDT 150,000 per annum till final redemption
of the bond.
Application Fee to BSEC: BDT 10,000
Consent Fee to BSEC: 0.10% on the Face Value
Miscellaneous: Other expenses related to the issue
All payments made by the Issuer or under or in respect of the Trust
Deed or the Bonds will be subject to any present or future taxes,
duties, assessments or governmental charges of whatever nature
imposed, levied, collected, withheld or assessed by or on behalf of
Tax Features: Bangladesh or any political subdivision thereof or any authority
thereof or therein having power to tax. The Issuer will not be
Obligated pay any additional amounts in respect of such taxes,
duties, assessments or governmental charges that may from time
to time be deducted or withheld from such payments, but will
19
provide or procure the provision of original or authenticated tax
receipts relating to any such deductions or withholdings to
Bondholders.
Documentation: Customary Capital Market documentation including force majeure,
negative pledge, cross default and indemnity provisions.
Conditions Precedent: In form and substance satisfactory to the MLA including without
limitation: (i) due diligence having been conducted and completed,
(ii) documentation for Financing and appropriate business
description disclosure in the offering circular, (iii) receipt by the
MLA of appropriate legal opinions from external counsel, (iv) the
Issuer having obtained all relevant approvals for Financing.
Governing Law: The laws of The People’s Republic of Bangladesh
At any time after the Bonds have become due and repayable, the
Trustee may, and without further notice in writing, take such
proceedings against the Issuer as it may think fit to enforce
repayment of the Bonds and to enforce the provisions of the Trust
Deed, but it will not be bound to take any such proceedings unless
(a) it shall have been so requested in writing by the holders of not
less than 662/3 per cent. in principal amount of the Bonds then
outstanding or shall have been so directed by an Extraordinary
Resolution of the Bondholders and (b) it shall have been
indemnified and/or secured to its satisfaction. No Bondholder will
be entitled to proceed directly against the Issuer unless the
Enforcement of Charges
Trustee, having become bound to do so, fails to do so within a
over securities:
reasonable period and such failure shall be continuing.
Notwithstanding anything as contained above and anywhere in the

Trust Deed, the Trustee shall be free to disregard such foregoing
provision and be bound to act on the instruction of a single holder
of the Bonds if (a) the request from the holders representing 662/3
percent in principal amount of the Bonds then outstanding or shall
have been so directed by an Extraordinary Resolution of the
Bondholders cannot be met for any reason and (b) the Trustee
shall have been indemnified and/or secured to its satisfaction by
such single holder.
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8. DESCRIPTION COLLATERAL SECURITY
OF AND TYPE OF CHARGES
TO BE CREATED AGAINST ISSUE
The issue is an unsecured corporate bond hence no charge on assets is to be created. The
issuer only owes the bondholders an indebtedness which is secured by claims over all present
and future assets of the issuer subsequent to all secured lenders.
21
9. RIGHTS & OBLIGATIONS OF THE ISSUER
Covenant to Repay
The Issuer covenants with the Trustee that it will, as and when the Bonds or any of them become due to
be redeemed or any principal on the Bonds or any of them becomes due to be repaid in accordance with
the Conditions, unconditionally pay or procure to be paid to or to the order of the Trustee in Bangladesh
Taka in Dhaka in immediately available freely transferable funds the principal amount of the Bonds or any
of them becoming due for redemption or repayment on that date and shall (subject to the provisions of
the Conditions) until all such payments (both before and after judgment or other order) are duly made
unconditionally pay or procure to be paid to or to the order of the Trustee as aforesaid on the dates
provided for in the Conditions interest on the principal amount of the Bonds or any of them outstanding
from time to time as set out in the Conditions provided that:
A) if any payment of principal or interest in respect of the Bonds or any of them is made after the
due date, payment shall be deemed not to have been made until either the full amount is paid to
the Bondholders or, if earlier, the seventh day after notice has been given to the Bondholders in
accordance with the Conditions that the full amount has been received by the Trustee to the
extent that there is failure in the subsequent payment to the Bondholders under the Conditions;
and
B) in any case where payment of the whole or any part of the principal amount due in respect of any
Bond is improperly withheld or refused interest shall accrue at applicable interest rate for the
Bond on the whole or such part of such principal amount from the date of such withholding or
refusal until the date either on which such principal amount due is paid to the Bondholders or, if
earlier, the seventh day after which notice is given to the Bondholders in accordance with the
Conditions that the full amount payable in respect of the said principal amount is available for
collection by the Bondholders such payment is in fact made.
The Trustee will hold the benefit of this covenant and the covenants as per Clause 11.3 of Trust deed
(Covenant to comply with Trust Deed, Conditions and Schedules,) and Clause 11.4 (Covenants by the
Issuer) on trust for the Bondholders.
Following an Event of Default

At any time after any Event of Default shall have occurred, the Trustee may:
by notice in writing to the Issuer, require it to make all subsequent payments in respect of Bonds to or to
the order of the Trustee and with effect from the issue of any such notice until such notice is withdrawn,
sub-clause 11.1.1of Clause 11.1 of Trust Deed (Covenant to Repay) and (so far as it concerns payments
by the Issuer) Clause of Trust Deed (Payment to Bondholders) shall cease to have effect.
22
Covenant to comply with Trust Deed, Conditions, Schedules and applicable law
The Issuer hereby covenants with the Trustee to comply with, perform and observe all those provisions
of the Trust Deed, the Conditions (including, without limitation, Condition 5 (Covenants)) and the other
Schedules which are expressed to be binding on it and to perform and observe the same. The Bonds are
subject to the provisions contained in this Trust Deed, all of which shall be binding upon the Issuer and
the Bondholders and all persons claiming through or under them respectively. The Bondholders and all
persons claiming under or through them respectively will also be entitled to the benefit of, and will be
bound by, this Trust Deed and the other Bond Documents and will be deemed to have notice of all of the
provisions of the Bond Documents applicable to them.
The Issuer hereby covenants with the Trustee to comply with, perform and observe all those provisions
of the applicable law including but is not limited to Bangladesh Securities and Exchange Commission
(Debt Securities) Rules 2021. The Issuer agrees that Bondholders and all persons claiming under or
through them respectively will also be entitled to the benefit of, and will be bound by, the applicable law
and will be deemed to have notice of all of the provisions of the applicable law applicable to them.
The Trustee shall itself be entitled to enforce the obligations of the Issuer under the Bonds and the
Conditions and the applicable law as if the same were set out and contained in this Trust Deed which
shall be read and construed as one document with the Bonds.
Covenants by the Issuer
The Issuer hereby covenants with the Trustee that, so long as any of the Bonds remain outstanding, it
will:
Books of account: At all times keep and procure that all its Subsidiaries keep such books of account as
may be necessary to comply with all applicable laws and so as to enable the financial statements of the
Issuer to be prepared and allow, subject to confidentiality obligations under applicable law, the Trustee
and any person appointed by it free access to the same at all reasonable times and to discuss the same
with responsible officers of the Issuer;
Event of Default: Give notice in writing to the Trustee forthwith upon becoming aware of any Event of
Default and without waiting for the Trustee to take any further action;
Corporate Governance: Comply (and shall ensure that each member of the Group will) in all material
respects with the corporate governance guidelines set out by the Bangladesh Bank and the Bangladesh
Securities and Exchange Commission.
Information: So far as permitted by applicable law, at all times give to the Trustee such information,
opinions, certificates and other evidence as it shall require and, in such form, as it shall require in relation
to Issuer for the performance of its obligations under the Bond Documents;
23
Execution of further Documents: So far as permitted by applicable law, at all times execute all such
further documents and do all such further acts and things as may be necessary at any time or times in
the opinion of the Trustee to give effect to the provisions of this Trust Deed;
Notices to Bondholders: Send or procure to be sent to the Trustee not less than 5 (five) business days
prior to the date of publication, one copy of each notice to be given to the Bondholders in accordance
with the Conditions and, upon publication, send to the Trustee two copies of such notice;
Notification of non-payment: Notify the Trustee forthwith in the event that it does not, on or before the
due date for payment in respect of the Bonds or any of them, pay unconditionally the full amount in the
relevant currency of the moneys payable on such due date on all such Bonds;
Notification of late payment: In the event of the unconditional payment to the Trustee of any sum due
in respect of the Bonds or any of them being made after the due date for payment thereof, forthwith give
notice to the Bondholders that such payment has been made;
Notification of redemption or repayment: 14 (Fourteen) days prior to the Redemption Dates or

purchase in respect of any Bond, give to the Trustee notice in writing of the amount of such redemption
or purchase pursuant to the Conditions and duly proceed to redeem or purchase such Bonds accordingly;
Authorised Signatories: Upon the execution hereof and thereafter forthwith upon any change of the
same, deliver to the Trustee a list of the Authorised Signatories of the Issuer, together with certified
specimen signatures of the same; and
Payments: Pay moneys payable by it to the Trustee hereunder without set off, counterclaim, deduction
or withholding, unless otherwise compelled by law and in the event of any deduction or withholding
compelled by law will pay such additional amount as will result in the payment to the Trustee of the
amount which would otherwise have been payable by it to the Trustee hereunder.
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10. RIGHTS & OBLIGATIONS OF THE TRUSTEE
Trustee’s Rights
Applicable Law: Notwithstanding anything contained in this Trust Deed the Trustee shall have all such
rights and powers granted to it under the applicable law including but is not limited to Bangladesh
Securities and Exchange Commission (Debt Securities) Rules 2021.
Advice: The Trustee may in relation to this Trust Deed act on the opinion or advice of or a certificate or
any information obtained from any lawyer, banker, valuer, surveyor, broker, auctioneer, accountant or
other expert (whether obtained by the Trustee, the Issuer, or any Subsidiary) and which advice or opinion
may be provided on such terms (including as to limitations on liability) as the Trustee may consider in its
sole discretion to be consistent with prevailing market practice with regard to advice or opinions of that
nature and shall not be responsible for any Liability occasioned by so acting; any such opinion, advice,
certificate or information may be sent or obtained by letter, telegram, telex, cablegram or facsimile
transmission;
Resolution or direction of Bondholders: the Trustee shall not be responsible for acting upon any
resolution purporting to be a Written Resolution or to have been passed at any meeting of the
Bondholders in respect whereof minutes have been made and signed or a direction of a specified
percentage of Bondholders, even though it may subsequently be found that there was some defect in the
constitution of the meeting or the passing of the resolution or the making of the directions or that for any
reason the resolution purporting to be a Written Resolution or to have been passed at any Meeting or the
making of the directions was not valid or binding upon the Bondholders;
Trustee not responsible for investigations: save as otherwise provided by applicable law, the Trustee
shall not be responsible for, or for investigating any matter which is the subject of, any recital, statement,
representation, warranty or covenant of any person contained in this Trust Deed, the Bonds, or any other
agreement or document relating to the transactions herein or therein contemplated or for the execution,
legality, effectiveness, adequacy, genuineness, validity, enforceability or admissibility in evidence thereof;
Entry on the Register: the Trustee shall not be liable to the Issuer or any Bondholder by reason of having
accepted as valid or not having rejected any entry on the Register later found to be forged or not authentic
and can assume for all purposes in relation hereto that any entry on the Register is correct;
Events of Default: save as otherwise provided by applicable law, until it shall have actual knowledge or
express notice to the contrary, the Trustee shall be entitled to assume that no such Event of Default has
happened and that the Issuer is observing and performing all the obligations on its part contained in the
Bonds and under this Trust Deed and no event has happened as a consequence of which any of the
Bonds may become repayable; and
25
Right to Deduct or Withhold: notwithstanding anything contained in this Trust Deed, to the extent
required by any applicable law, if the Trustee is or will be required to make any deduction or withholding
from any distribution or payment made by it hereunder or if the Trustee is or will be otherwise charged to,
or is or may become liable to, tax as a consequence of performing its duties hereunder whether as
principal, agent or otherwise, and whether by reason of any assessment, prospective assessment or
other imposition of liability to taxation of whatsoever nature and whenever made upon the Trustee, and
whether in connection with or arising from any sums received or distributed by it or to which it may be
entitled under this Trust Deed (other than in connection with its remuneration as provided for herein) or
any investments or deposits from time to time representing the same, including any income or gains
arising there from or any action of the Trustee in connection with the trusts of this Trust Deed (other than
the remuneration herein specified) or otherwise, then the Trustee shall be entitled to make such deduction
or withholding or, as the case may be, to retain out of sums received by it an amount sufficient to discharge
any liability to tax which relates to sums so received or distributed or to discharge any such other liability
of the Trustee to tax from the funds held by the Trustee upon the trusts of this Trust Deed.
Liability: The Trustee shall not be liable to any person for any matter or thing done or omitted in any
way in connection with or in relation to this Trust Deed or the Bonds save in relation to its own gross
negligence, wilful default or fraud. This Clause 6.1.8 shall survive the termination or expiry of this Trust
Deed or the removal or termination of the Trustee.
Force Majeure: The Trustee shall not be liable for any failure or delay in the performance of its
obligations under this Trust Deed or any other Bond Document because of circumstances beyond such
Trustee's control, including, without limitation, acts of God, flood, war (whether declared or undeclared),
terrorism, fire, riot, embargo, labour disputes, any laws, ordinances, regulations or the like which restrict
or prohibit the performance of the obligations contemplated by this Trust Deed or any other Bond
Document, inability to obtain or the failure of equipment, or interruption of communications or computer
facilities, and other causes beyond such Trustee's control whether or not of the same class or kind as
specifically named above.
Immunities: The Trustee's immunities and protections from liability and its right to indemnification in
connection with the performance of its duties under this Trust Deed shall extend to the Trustee's officers,
directors and employees. Such immunities and protections and right to indemnification, together with the
Trustee's right to compensation, shall survive the Trustee's resignation or removal, the defeasance or
discharge of this Trust Deed and final payment of the Bonds. The Issuer acknowledges that in any
proceedings taken in relation to this Trust Deed, it will not be entitled to claim for itself or any of its assets
immunity from suit, execution, attachment or other legal process.
Professional charges: any trustee being a banker, lawyer, broker or other person engaged in any
profession or business shall be entitled to charge and be paid all usual professional and other charges
for business transacted and acts done by him or his partner or firm on matters arising in connection with
26
the trusts of this Trust Deed and also his properly incurred charges in addition to disbursements for all
other work and business done and all time spent by him or his partner or firm on matters arising in
connection with this Trust Deed, in each case as agreed pursuant to the Fee Letter (including matters
which might or should have been attended to in person by a trustee not being a banker, lawyer, broker
or other professional person);
Expenditure by the Trustee: nothing contained in this Trust Deed shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the performance of its duties or the exercise
of any right, power, authority or discretion hereunder if it has grounds for believing the repayment of such
funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it;
and
Trustee may enter into financial transactions with the Issuer: no Trustee and no director or officer of
any corporation being a Trustee hereof shall by reason of the fiduciary position of such Trustee be in any
way precluded from making any contracts or entering into any transactions in the ordinary course of
business with the Issuer or any Subsidiary, or any person or body corporate directly or indirectly
associated with the Issuer or any Subsidiary, or from accepting the trusteeship of any other debenture
stock, debentures or securities of the Issuer or any Subsidiary or any person or body corporate directly
or indirectly associated with the Issuer or any Subsidiary, and neither the Trustee nor any such director
or officer shall be accountable to the Bondholders or the Issuer or any Subsidiary, or any person or body
corporate directly or indirectly associated with the Issuer or any Subsidiary, for any profit, fees,
commissions, interest, discounts or share of brokerage earned, arising or resulting from any such
contracts or transactions and the Trustee and any such director or officer shall also be at liberty to retain
the same for its or his own benefit.
Trustee Liability: The Trustee shall not be liable to any person for any matter or thing done or omitted
in any way in connection with or in relation to this Trust Deed or the Bonds save in relation to its own
gross negligence, wilful default or fraud.
Right to Sue: The Trustee may sue and may be sued on behalf of the Bondholders.
Trustee's powers and duties

Applicable Law: Notwithstanding anything contained in this Trust Deed the Trustee shall have all such
responsibility as set out in the applicable law including but is not limited to Bangladesh Securities and
Exchange Commission (Debt Securities) Rules 2021.
Act for Bondholders: Subject to applicable law and terms and conditions of this Trust Deed, the Trustee
shall act on behalf and for the exclusive interest of the Bondholders;
27
Monitoring: Trustee shall ensure that Issuer is observing the applicable law for the Bonds and the terms
and conditions of the Bond Documents. As soon as the Trustee is aware of any breach by the Issuer it
shall immediately inform the Bondholders and the Issuer of such breach;
Report to BSEC: Trustee shall submit an annual compliance report to the BSEC on the activities of the
Issuer including repayment of dues to the Bondholders. When Trustee shall submit such report to the
BSEC it shall provide copy to the Issuer and the Bondholders;
Grievances of the Bondholders: Upon receipt of a complaint from the Bondholders Trustee shall take
necessary steps for redress of grievances of the Bondholders within one month of the date of receipt of
the complaints and he shall keep the BSEC and the Issuer informed about the number, nature and other
particulars of the complaints received and the manner in which such complaints have been redressed;
Trustee's determination The Trustee may determine whether or not a default in the performance or
observance by the Issuer of any obligation under the provisions of this Trust Deed or contained in the
Bonds is capable of remedy and if the Trustee shall certify that any such default is, in its opinion, not
capable of remedy, such certificate shall be conclusive and binding upon the Issuer and the Bondholders;
Determination of questions: the Trustee as between itself and the Bondholders shall have full power to
determine all questions and doubts arising in relation to any of the provisions of this Trust Deed and every
such determination, whether made upon a question actually raised or implied in the acts or proceedings
of the Trustee, shall be conclusive and shall bind the Trustee and the Bondholders;
Trustee's discretion: the Trustee shall (save as expressly otherwise provided herein) as regards all the
trusts, powers, authorities and discretions vested in it by this Trust Deed or by operation of law, on
reasonable ground have absolute and uncontrolled discretion as to the exercise or non-exercise thereof
and the Trustee shall not be responsible for any Liability that may result from the exercise or non-exercise
thereof (save as otherwise provided by applicable law) but whenever the Trustee is under the provisions
of this Trust Deed bound to act at the request or direction of the Bondholders, the Trustee shall
nevertheless not be so bound unless first indemnified and/or provided with security to its satisfaction
against all actions, proceedings, claims and demands to which it may render itself liable and all costs,
charges, damages, expenses and liabilities which it may incur by so doing;
Trustee's consent: any consent given by the Trustee for the purposes of this Trust Deed may be given
on such terms and subject to such conditions (if any) as the Trustee may require;
Application of proceeds: the Trustee shall not be responsible for the receipt or application by the Issuer
of the proceeds of the issue of the Bonds;
Error of judgment: the Trustee shall not be liable for any error of judgment made in good faith applying
due diligence and without negligence by any officer or employee of the Trustee assigned by the Trustee
28
to administer its corporate trust matters, save in relation to its own gross negligence, wilful default or
fraud;
Agents: Subject to the provisions of the Trust Act 1882 and Bangladesh Securities and Exchange
Commission (Debt Securities) Rules 2021, the Trustee may, in the conduct of the trusts of this Trust Deed
instead of acting personally, employ and pay an agent on any terms, whether or not a lawyer or other
professional person, to transact or conduct, or concur in transacting or conducting, any business and to
do or concur in doing all acts required to be done by the Trustee (including the receipt and payment of
money) with the consent of Issuer and the Trustee shall not be responsible for any loss, liability, expense,
demand, cost, claim or proceedings incurred by reason of the misconduct, omission or default on the part
of any person appointed by it hereunder or be bound to supervise the proceedings or acts of any such
person provided that the Trustee had exercised reasonable care in the appointment of such person;
Confidential information: the Trustee shall not (unless required by law or ordered so to do by a court of
competent jurisdiction) be required to disclose to any Bondholder confidential information or other
information made available to the Trustee by the Issuer in connection with this Trust Deed and no
Bondholder shall be entitled to take any action to obtain from the Trustee any such information.
Determination of Interest Rate: the Trustee shall determine Applicable Interest Rate in accordance with
Condition of the Bond.
Exercise of Discretion
Notwithstanding anything in this Trust Deed to the contrary, the Trustee shall not be obliged to exercise
or consider exercising any discretion or consider making or make any determination (including, without
limitation, any determination as to whether any fact or circumstance or activity or thing is material or
substantial or complies with some such similar quantitative standard) or to consider taking or take any
action whatsoever in connection with or under or pursuant to the Bonds unless directed to do so by the
holders of not less than 662/3 percent in principal amount of the Bonds then outstanding or if so directed
by an Extraordinary Resolution of Bondholders (subject in all cases to the Trustee having been
indemnified or provided with security to its satisfaction and otherwise being satisfied that it is lawful for it
to so exercise discretion, make a determination or otherwise take any action). Such direction shall specify
the way in which the Trustee shall exercise such discretion or, as the case may be, make the
determination or take the action to be taken by the Trustee.
The Trustee will be responsible for any loss, expense, damage, claim, cost, charge or liability which may
be suffered as a result of any exercise or non-exercise of a discretion or the making or failure to make
any determination or the taking or failure to take any action by the Trustee, acting on the directions of the
Bondholders as aforesaid or pending the provision of such a direction.
29
11. RIGHTS & OBLIGATIONS OF THE ARRANGER
The Issuer has appointed Standard Chartered Bank acting through its Bangladesh Branch as the
Mandated Lead Arranger of the proposed Bonds.
Rights and Obligations of the Arranger of the Non-Convertible Floating Rate Subordinated Bond include:
a. Due diligence of the issue prior to submission of the proposed bonds to external parties;
b. Coordinate and provide integral support for preparation of Information Memorandum and
appointment of relevant parties;
c. Ensure proper documentation completion and compliance with regulatory requirements, prior to
submission to regulators;
d. Engage with regulators and Issuer for approval of the bonds;
e. Support due diligence of prospective investors for investing in the bonds;
f. Complete documentation of the bonds prior to subscription of the bonds;
g. Monitor compliance with conditions precedent prior to issuance of the bonds.
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12. RIGHTS & OBLIGATIONS OF ELIGIBLE INVESTORS
Rights and Obligations of the eligible Investors of Non-Convertible Floating Rate Subordinated Bond
are, inter alia:
 Ownership of the Bond: Each of the Issuer, the Trustee may deem and treat the registered
holder of a Bond as the absolute owner of such Bond, free of any equity, set-off or counterclaim
on the part of the Issuer against the original or any intermediate Holder of such Bond (whether
or not the Bond shall be overdue and notwithstanding any notation of ownership or other writing
thereon or any notice of previous loss or theft of the Bond Certificate issued in respect of that
Bond) for all purposes and, except as ordered by a court of competent jurisdiction or as required
by applicable law, the Issuer, the Trustee and the Agents shall not be affected by any notice to
the contrary.
 Right to receive payment – Subject to terms and conditions of the Bond, each Bondholder shall
have a right to receive payment of principal amount of the Bond on the redemption date and
interest amount of the Bond on each Interest Payment Date.
 Transfer of Bonds –Subject to terms and conditions of the Bond Documents each Bondholder
shall have the right to transfer the Bonds freely
 Basic Rights: Basic rights of the Bondholders/Investors include but are not limited to: (i) secure
methods of ownership registration; (ii) obtain relevant information on the company on a timely
and regular basis; (iv) participate and vote in bondholders meetings.
 Rights Subordinated: The rights of the holders of Bonds against the Issuer (including for
principal and interest) are subordinated and junior in right of payment to its Obligations (a) to its
depositors, (b) under bankers' acceptances and letters of credit issued by the Issuer, (c) to Senior
Creditors (including the Bangladesh Bank and the Deposit Insurance Trust Fund). In the event of
any insolvency, receivership, conservatorship, reorganization, readjustment of debt or similar
proceedings or any liquidation or winding up of or relating to the Issuer, whether voluntary or
involuntary, all such Obligations of the Issuer shall be entitled to be paid in full before any payment
shall be made to the Bondholders in respect of the Bonds. In the event of any such proceedings,
after payment in full of all sums owing on such prior Obligations, the Bondholders and any other
payment required to be made to a creditor in respect of indebtedness which ranks or is expressed
to rank pari passu with the Bonds, shall be entitled to be paid from the remaining assets of the
Issuer, the unpaid principal thereof and any unpaid premium, if any, and interest before any
payment or other distribution, whether in cash, property or otherwise, shall be made on account
of any capital stock or any Obligations of the Issuer ranking junior to the Bonds.
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13. DESCRIPTION OF THE ISSUER: IFIC BANK LIMITED
International Finance Investment and Commerce Bank Limited (IFIC Bank) was established in 1976 as a
joint venture between the Government of Bangladesh and sponsors in the private sector to form a finance
company within the country and for setting up joint venture banks/financial institutions aboard. In1983,
the bank was converted into a full-fledged commercial bank, and currently the GoB holding 32.75%
shares. IFIC Bank is listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange. As of 30
September 2021, the bank has a network of 157 branches, 589 Uposhakhas, 39 ATM Boots with 53
ATMs and 403 global correspondent banking relationships, supported by 3,740 employees.
A. CAPITAL STRUCTURE
 Authorized capital: BDT 40,000,000,000 (as of 30 September 2021)

 Paid-up capital: BDT 17,008,675,610 (as of 30 September 2021)
Shareholding Structure
30 September 2021 31 Dec 2020

Type of Shareholder
No. of Shares % No. of Shares %
Sponsors 69,933,264 4.11 66,603,111 4.11
Government (Director also) 557,009,592 32.75 530,485,326 32.75
Sub-total 626,942,856 36.86 597,088,437 36.86
Institutions 433,760,208 25.5 470,454,459 29.04
Foreign Investors 14,349,174 0.84 12,717,884 0.79
General Investors 625,815,323 36.80 539,613,088 33.31
Sub-total 1,073,924,705 63.14 1,022,785,431 63.14
Total 1,700,867,561 100 1,619,873,868 100.00
The Government is representing in the Board of the bank by three nominated Directors and as such,
Sponsors & Directors are at present holding 36.86% shares of the Bank.
As of 30 September 2021
Particulars
Amount in BDT % of Total Assets
Liabilities
Borrowings from other banks, financial
3.6%
institutions and agents 14,913,336,063
Subordinated Bond 6,400,000,000 1.6%
Deposits and other Accounts 325,701,156,606 79.6%
Other Liabilities 32,365,407,155 7.9%
Total Liabilities 379,379,899,825 92.7%
Paid up capital 17,008,675,610 4.16%

Statutory reserve 6,864,775,853 1.68%
General reserve 155,071,397 0.04%
Revaluation reserve against securities 49,443,201 0.01%
Revaluation reserve against fixed assets 115,314,704 0.03%
Foreign Currency translation reserve 96,259,657 0.02%
Surplus in profit and loss account 5,571,580,495 1.36%
Total Shareholders' Equity 7.30%
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As of 30 September 2021
Particulars
Amount in BDT % of Total Assets
29,861,120,917
Total Liabilities & Shareholders' Equity 409,241,034,472 100%
Total Regulatory Capital of IFIC as of 30 September 2021

Particulars Amount in BDT
Total Assets (excluding off-balance sheet assets) 409,241,034,472
Total Risk weighted assets (RWA) 300,685,097,964
Total Common Equity Tier 1 (CET1) capital 28,639,495,448
Total Additional Tier-I Capital -
Total admissible Tier 1 Capital 28,639,495,448
Total admissible Tier 2 Capital 13,161,320,668
Total Eligible Regulatory Capital (Tier 1 and 2) 41,800,816,116
Capital to Risk Weighted Assets Ratio (CRAR) 13.90%
B. BUSINESS OF THE ISSUER: IFIC BANK LIMITED
International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company
incorporated in the People's Republic of Bangladesh with limited liability. It was set up at the instance of
the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the
private sector with the objective of working as a finance company within the country and setting up joint
venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private
sector, IFIC was converted into a full-fledged commercial bank. The Government of the People's Republic
of Bangladesh, now, holds 32.75% of the share capital of the Bank. Sponsors/ directors with vast
experience in their respective fields of trade and commerce own 4.11% of the share capital and the rest
is held by Institutions both local & foreign and general public shareholders.
A total of 157 branches and 589 Uposhakhas of IFIC are dedicated in providing services to the clients
with the help of a skilled and dedicated workforce. As one of the leading banks of the banking sector in
the country, IFIC is always committed to the welfare and economic prosperity of the people and the
community.
IFIC Bank recognizes customers as partners and aims at providing high quality products and services
at a very competitive price. The Bank focuses on Customer Service Excellence (CSE) while providing
those products and services with the optimum desire to gain total customer satisfaction and confidence.
The Bank hopes to build reliability, trust and friendship through honesty and integrity for a healthy long-
term alliance. The Bank takes charge of every client to make him/her an advanced partner through
addressing his/ her banking needs and wants to provide best services at affordable prices. The Bank
provides a professional, safe and enjoyable work environment for its employees that supports job
enthusiasm, positive relationship and effective teamwork. The Bank provides clear directions to motivate
the team to achieve the goals. The Bank seeks loyalty of its employees to the company by treating them
with respect, understanding and recognition.
Cluster Management is considered as a new and highly efficient form of innovation support providers that
channelizes specialized and customized business support services to enterprises. The high quality cluster
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management team works relentlessly to ensure cluster excellence in the Bank where the efficient cluster
Managers act as a driving force for the clusters. Their performance is very much linked to the professional
expertise and the capability of the cluster managers who dispose of good cluster insight necessary for an
efficient support to the cluster members.
Despite challenges in the banking sector due to the pandemic and fall in returns, IFIC adopted prudential
policies and measures to strengthen its financial health in its quest to attain long term sustainable growth.
The prime focus has been improving asset quality, secured investment, low cost deposits, optimum
liquidity, recovering classified and written off loans, automation and process reengineering, upholding
service excellence and rationalizing costs. As a result the bank’s asset quality improved with steady
growth in assets & deposits but reduced margins impacted revenue and profit growth. Brief of key
indicators as of 30 September 2021 (standalone basis) are stated below:
 Balance sheet size reached at BDT 470,785 million including off balance sheet exposure
 Deposit growth 10.25%
 Loans & advances portfolio growth 12.29%
 NPL was reduced to 3.93% (Y2020: 3.97%)
 Net Interest Income BDT 4,563 million (Y2020: 2,864 million)
 Operating profit BDT 4,920 million (Y2020: 2,902 million)
 Profit before tax BDT 3,424 million (Y2020:1,664 million)
 Net profit BDT 1,613 million (Y2020: 562 million)
IFIC Bank undertakes business activity through two main wings of Business Banking and Retail Banking.
The Business Banking wing looks offers Trade Finance, SME & Agri Business, Corporate Business and
Treasury Business of the bank. The Retail Banking wing looks after the bank’s retail deposit and loan
businesses and card businesses through its various branches. In 2019, IFIC established 35 Uposhakhas
(grown to 589 as of 30 September 2021) across the country and launched IFIC Aamar Bank (Digital
Banking Platform) and IFIC Shohoj Account to expand financial inclusion.
Since the inception of its journey, IFIC Bank has been playing the pioneering role among the private
sector banks in establishing joint venture/overseas operations beyond the national boundary. The Bank
has so far been able to set up joint venture operations in the Maldives, Oman, Nepal, Pakistan and UK.
Bank’s operation in the Maldives was, however, handed over to the Maldivian Government in 1992. The
overseas joint venture operations have not only brought a positive image for the Bank in the international
arena, but also contributed a lot to its profitability.
Overseas ventures of IFIC include the following:
 Nepal Bangladesh Bank Limited

Nepal Bangladesh Bank Limited, a joint venture commercial bank between IFIC Bank Limited
and the Nepali Nationals, started its operation with effect from 06 June 1994 in Nepal. The Bank
has so far opened 100 (One hundred) branches at the different important locations in Nepal. IFIC
Bank presently holds 40.91% shares in Nepal Bangladesh Bank Limited.
 Oman Exchange LLC
Oman Exchange LLC, a joint venture between IFIC Bank Limited and the Omani Nationals, was
established in 1985 to facilitate remittance by the Bangladeshi wage earners from the Sultanate
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of Oman. IFIC Bank holds 49% shares in the Exchange Company and the balance 51% is held
by the Omani sponsors. The operations of the branches are fully computerized having online
system. The Exchange Company has a network of 12 (twelve) branches covering all the major
cities/towns of Oman. In the meantime, the company has established direct remittance services
with 9 (nine) countries, such as, Bangladesh, India, Indonesia, Nepal, Pakistan, Philippines,
Qatar, Sri Lanka and U.A.E.
 MCB Bank Limited

IFIC Bank had two branches in Pakistan, one in Karachi and the other in Lahore. Karachi Branch
was opened on 26 April 1987 while the Lahore Branch was opened on 23 December 1993. To
meet the Minimum Capital Requirement of the State Bank of Pakistan, the overseas branches of
IFIC in Pakistan was merged with a reputed leasing company named National Development
Leasing Corporation Ltd. (NDLC) and emerged as NDLC-IFIC Bank Limited with effect from 02
October 2003 and it was subsequently renamed as the NIB Bank Limited with effect from 28
November 2005. In 2017 NIB Bank Limited again merged with MCB Bank Limited and IFIC Bank
now holds 175,508 shares of MCB Bank Limited.
 IFIC Money Transfer (UK) Limited

IFIC Money Transfer (UK) Limited, a fully owned subsidiary exchange company of IFIC Bank was
incorporated in UK and commenced its operation on 31 August 2011 to facilitate inward foreign
remittance from the United Kingdom.
Correspondent Banking Relationship: Apart from the above, IFIC Bank Limited has a wide
range of correspondent network across the world to facilitate smooth foreign trade transactions.
The Bank maintains 26 (twenty-six) Standard Settlement Instructions (Nostro Accounts) involving
7 (seven) currencies, e.g. AUD, ACU-D, CHF, EUR, GBP, JPY and USD at important financial
centers. Total correspondents of IFIC Bank stands at 403 (both local & foreign) as on 30
September 2021.
Subsidiaries: IFIC Bank has two local subsidiaries namely IFIC Securities Limited (IFICSL) and
IFC Investment Limited (IFICIL).
IFICSL is devoted to the development of the Capital Market of the country through extending
brokerage services to individual and institutional investors. IFICSL deals in buying, selling and
trading of securities in the Capital Market. It aims at providing all sorts of brokerage and custodial
services. IFICSL is a TREC holder of Dhaka Stock Exchange Limited.
IFIC Investment is devoted to establish, maintain, undertake, carry on, transact the business of
merchant banking and other businesses as well as services related to capital market and to
transact and do all matters and things on issue management, underwriting, portfolio
management, asset management, capital market operation and other financial services including
corporate advisory services, mergers & acquisition, equity investment, joint-venture sourcing,
corporate restructuring, financial consultancy, corporate research, privatization and other related
services in Bangladesh and overseas. The Company has already applied to Bangladesh
Securities & Exchange Commission (BSEC) for Merchant Banking License.
35
C. BOARD OF DIRECTORS AND MANAGEMENT
Board of Directors
The Bank’s Board comprises of 9 members including the Managing Director & CEO. and two
Independent Directors. Mr. Salman F Rahman MP is the present Chairman of the Bank. The Board
is involved in policy formulations, strategic direction setting, business plan approval, approval of
financial position and results and review of various activities and also providing necessary directions
to the management for conducting businesses in a competitive and profitable manner by managing
risks and complying with the regulatory requirements. The Board has three sub committees i.e.
Executive Committee, Audit Committee and Risk Management Committee.
Executive Committee (EC)

The Executive Committee of the Board has 3 members and is headed by Mr. A.R.M. Nazmus Sakib
as Chairman. The Executive Committee reviews all the credit proposals beyond the delegation of
management and approve loans, other than large loans (up to 5% of capital for new relationship and
up to 10% of Capital for renewal & enhancement of existing relationship). It is also responsible for
administration, investment aspect, expansion of business etc. The Board confirms the decision of all
Executive Committee meetings and assesses the operational results. Company secretary acts as the
secretary to the Committee.
Audit Committee
The Audit Committee of the Board was duly constituted by the Bank comprising of 3 members of the
Board. The Committee is headed by Ms. Rabeya Jamali, Independent Director as Chairman as per
the revised corporate governance guidelines issued by the Bangladesh Securities and Exchange
Commission (BSEC). The committee reviews and monitors regulatory compliance, financial
reporting, internal control & internal audit functions, and other operational activities. Company
secretary acts as the secretary to the Committee.
Risk Management Committee

The Risk Management Committee of the Board has 5 members and is headed by Mr. Md. Zafar Iqbal,
ndc as Chairman. The Committee mainly reviews and discusses the observations and findings on
Monthly Risk Management Paper (RMP) along with other relevant risk parameters related with credit
portfolio, liquidity, market and operational risk management submitted through the Risk Management
Division of the Bank on quarterly rest. The Committee also reviews the risk appetite capacity of the
Bank commensurate with its capital base, stress test results and implementation of Bank’s ICAAP
etc. The decisions/resolutions of the Committee are submitted to Bangladesh Bank for regulatory
compliance. The resolutions were also disseminated to all concerned of the Bank for ensuring
compliance and implementation.
36
Board of Directors
Sl. Name of the Board Member Designation
1. Mr. Salman F Rahman MP Chairman
2. Mr. Ahmed Shayan Fazlur Rahman Vice Chairman
3. Mr. Sudhangshu Shekhar Biswas Independent Director
4. Ms. Rabeya Jamali Independent Director
5. Mr. A.R.M. Nazmus Sakib Director
6. Ms. Quamrun Naher Ahmed Director
7. Mr. Md. Zafar Iqbal, ndc Director
8. Mr. Md. Golam Mostofa Director
9. Mr. Shah A Sarwar Managing Director
Executive Committee
Sl. Name of the Member Designation
1. Mr. A.R.M. Nazmus Sakib Chairman
2. Ms. Quamrun Naher Ahmed Member
3. Mr. Md. Golam Mostofa Member
Audit Committee
1. Ms. Rabeya Jamali Chairman
2. Mr. Sudhangshu Shekhar Biswas Member
3. Mr. Md. Zafar Iqbal, ndc Member
Risk Management Committee

1. Mr. Md. Zafar Iqbal, ndc Chairman
2. Ms. Rabeya Jamali Member
3. Mr. A.R.M. Nazmus Sakib Member
4. Ms. Quamrun Naher Ahmed Member
5. Mr. Md. Golam Mostofa Member
Company Secretary acts as the secretary to the Board and the Sub-Committees.
Senior Management Team: The management of IFIC Bank is headed by the Managing Director &
CEO, Mr. Shah A Sarwar since December 2012. The day to day strategy implementation and
operational objective achievements are overseen by the senior management team of the bank. The
Managing Director & CEO is supported by a group of experienced professionals comprising of Deputy
Managing Directors and functional divisional heads. The team consists of highly experienced and
qualified professionals who ensure compliance and revenue attainment of the bank’s different
businesses.
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D. DESCRIPTION OF ENCUMBERED AND UNENCUMBERED ASSETS WITH VALUE
THEREOF
The assets of IFIC Bank Limited are unencumbered. The value of the assets of IFIC Bank Limited
(on standalone basis) comprises of Cash, Loans and Advances, Fixed Assets including premises,
furniture and fixtures, etc. and as of 30 September 2021 is BDT 405,058,506,438 only, total value of
which is unencumbered.
E. PROFILE OF BOARD OF DIRECTORS
Mr. Salman F Rahman MP

Chairman
Mr. Salman F Rahman MP is an eminent business personality of the country. He is the Vice-Chairman of
BEXIMCO Group - the largest private sector group in Bangladesh. Founded in 1970 as a commodities
trading company, the Group now has operations and investments across a wide range of industries
including textiles, trading, marine food, real estate development, hospitality, construction, information and
communication technologies, media, ceramics, aviation, pharmaceuticals and energy.
Mr. Rahman is the Honorable Member of the Parliament from Dhaka-1 Constituency and also an Adviser
to the Prime Minister for the Private Industry and Investment sector in the rank of a Cabinet Minister
without any financial perks.
He was the President of FBCCI, the apex organization of businessmen of the country. Currently, he is
the Chairman of IFIC Bank Limited and Abahani Limited. He is also the Chairman of the Board of
Governors of Bangladesh Enterprise Institute. He is associated with many social and charitable
organizations.
Mr. Ahmed Shayan Fazlur Rahman

Vice Chairman
Mr. Ahmed Shayan Fazlur Rahman is the eminent young businessman represents the Beximco Group
as Executive Director, the largest conglomerate in Bangladesh. He has completed his BBA with distinction
from American University, Washington DC, USA. Mr. Rahman has 11 years of expertise in the various
sectors like Pharmaceuticals, Fuel, Power & Energy, Textile, ICT & Telecom, etc. He plays a vital role in
advising the Group in formulating current business strategies as well as future growth potentials. Mr.
Rahman is the son of Mr. Salman F Rahman, Vice Chairman and founder of the Beximco Group.
Mr. Rahman is also instrumental in working with various international organizations and supporting
charities both locally and internationally for the development of autism and other world issues. He is a
Counselor of the Abahani Limited, the largest sporting club in Bangladesh. Being a great sports fan and
advocate of promoting various sports in Bangladesh, Mr. Rahman has been instrumental in acquiring
100% of the Dhaka Dynamites franchise for the Bangladesh Cricket Premier League (BPL).
Mr. Rahman is the Chairman, Advisory Committee for Bangladesh, Prince of Wales Trust, British Asian
Sector. He is also Honorary Consul General of the Republic of Kazakhstan in Bangladesh and Member,
Executive Committee, SAARC Youth Chamber.
38
He is appointed as a Director to the Board of IFIC Bank Limited as the representative of M/s. New Dacca
Industries Limited and currently, he is the Vice Chairman of the Bank.
Mr. Sudhangshu Shekhar Biswas

Independent Director
Mr. Sudhangshu Shekhar Biswas is a former Additional Secretary to the Government of the People’s
Republic of Bangladesh. He is appointed as an independent Director for the first term of three years with
effect from 18 July 2021.
Mr. Biswas did his Honours and Masters in Economics from Rajshashi University. He also did a Certificate
Course on Government Budgeting, Accounting & Auditing from CIPFA, London, UK.
He attended various international trainings, seminars and workshops on Public Private Partnership
Course, Professional Development, Budgeting & Accounting System, Economic Development,
Administration and Development, Local Government Development, Livestock Development Program held
in USA, Canada, Australia, China, Singapore, Vietnam, Philippines and Thailand.
Mr. Biswas is a member of the Audit Committee of the Board of Directors of IFIC Bank Limited. He is the
Director of IFIC Securities Limited, IFIC Money Transfer (UK) Limited, UK and also an Alternate Director
of Oman Exchange LLC, a joint venture operation of the Bank in the Sultanate of Oman.
Ms. Rabeya Jamali

Independent Director
Ms. Rabeya Jamali is an Advocate of the Supreme Court of Bangladesh and also a Partner of Jamali &
Morshed. She did her LL.B. (Honours) from the University of Dhaka, Dhaka, Bangladesh and LL.M. in
Banking and Financial Law from the Boston University School of Law, Boston, MA, USA. She attended
various workshops, seminars and conferences both at home and abroad. She is a member of the
Bangladesh Supreme Court Bar Association.
Ms. Jamali has core expertise in Commercial Contracts, Construction Contracts, Joint Ventures, SPV for
infrastructure development projects, Private Public Partnership (PPP) Projects, Telecommunication
related infrastructure, Power and Energy, Company Law, Financial and Banking Laws, Securities Laws
and related Arbitration.
Ms. Jamali is the Chairman/Chairperson of the Audit Committee and a member of the Risk Management
Committee of the Board of Directors of IFIC Bank Limited. She is the Director of IFIC Money Transfer
(UK) Limited, UK, IFIC Securities Limited and IFIC Investment Limited. She is also an Alternate Director
of Nepal Bangladesh Bank Limited, Nepal.
Mr. A. R. M. Nazmus Sakib

Director
Mr. A. R. M. Nazmus Sakib is a Director to the Board of IFIC Bank Limited representing M/s. Trade next
International Limited.
Mr. Sakib did his post-graduation in Botany and also obtained M.Sc. degree in Development Finance.
39
Mr. Sakib is the Chairman of Nepal Bangladesh Bank Limited, Nepal and IFIC Money Transfer (UK)
Limited, UK. He is the Director of IFIC Investment Limited and Oman Exchange LLC, a joint venture
operation of the Bank in the Sultanate of Oman.
Ms. Quamrun Naher Ahmed

Director
Ms. Quamrun Naher Ahmed, a former Additional Secretary of the Government, was nominated as a
Director to the Board of IFIC Bank Limited on 30 March 2016 by the Ministry of Finance, Government of
the People’s Republic of Bangladesh.
Ms. Ahmed did her Honours and Masters in Economics from the University of Dhaka. She also obtained
an M. Phil degree in Social Change from the University of Science and Technology, Norway. She
attended various Training, Seminars and Conferences both at home and abroad.
Ms. Ahmed is the member of the Executive Committee, the Risk Management Committee and the
Nomination and Remuneration Committee (NRC) of the Board of Directors of IFIC Bank Limited. She is
the Chairman of IFIC Securities Limited. She is the Director of IFIC Money Transfer (UK) Limited, UK and
Nepal Bangladesh Bank Limited, Nepal as well’
Mr. Md. Zafar Iqbal

Director
Mr. Md. Zafar Iqbal is an Additional Secretary to the Ministry of Public Administration, Government of the
People’s Republic of Bangladesh. He was nominated as a Director to the Board of IFIC Bank Limited on
10 March 2020 by the Ministry of Finance, Government of the People’s Republic of Bangladesh.
Mr. Iqbal did his Honours and Masters in Accounting from the University of Dhaka. He also did his MBA
with major in Finance from IBA of the University of Dhaka. Besides, Mr. Iqbal did his Graduate Certificate
Course in Development Economics from the Australian National University, Canberra and completed his
Masters in Economics from the University of Wollongong, New South Wales, Australia. He also completed
his NDC Course from the National Defence College, Dhaka.
Mr. Iqbal has wide-ranging experience in organizing and attending national and international seminars,
trainings, workshops on public administration & management, disbursement, harmonization,
effectiveness and management of development assistance, good governance, innovation and change
management held in the UK, Japan, India, Thailand and Singapore.
Mr. Iqbal is the Chairman of the Risk Management Committee and a member of the Audit Committee of
the Board of Directors of IFIC Bank Limited. He is also the chairman of IFIC Investment Limited. He is
the director of IFIC Money Transfer (UK) Limited, UK and an Alternate Director of Oman Exchange LLC,
a joint venture operation of the Bank in the Sultanate of Oman.
Md. Golam Mostofa

Director
Mr. Md. Golam Mostofa is an Additional Secretary to the Ministry of Finance, Government of the People’s
Republic of Bangladesh. He was nominated as a Director to the Board of IFIC Bank Limited on 11 October
2021 by the Ministry of Finance, Government of the People’s Republic of Bangladesh and the effective
date of his joining on the Board is 21 October 2021.
40
Mr. Mostofa did his Honours and Masters in Economics from Dhaka University. He also did his MBA with
major in Finance from Northern University Bangladesh. He participated in various training courses both
at home and abroad.
Mr. Mostofa is the member of the Executive Committee and the Risk Management Committee of the
Board of Directors of IFIC Bank Limited. He is the Director of IFIC Securities Limited, a fully owned
subsidiary company of the Bank
41
F. PROFILE OF MANAGEMENT
Mr. Shah A Sarwar

Managing Director & CEO
Mr. Mohammad Shah Alam Sarwar joined IFIC Bank Limited as Managing Director on 02 December
2012. He started his career as a Management Trainee of ANZ Grindlays Bank in 1982. Over the last 38
years in banking, Mr. Sarwar’s career evolved as a well-rounded banker with adequate exposures in
General Management, Client Coverage, Corporate Banking, Risk Management, Operations and IT
Management.
He has core expertise in the creation of New Lines of Business, Process Re-engineering, Strategic and
Change Management. He has got optimum exposure & training in all areas of Banking from Australia,
USA, UK, Hong Kong, UAE, Singapore, Sri Lanka and Pakistan. He is a Six Sigma Black Belt holder and
certified in Credit Accreditation Process, International Trade Skill Assessment, Credit Skill Assessment
and Credit in Context Course.
Earlier, he sat on the Board of Grameen Bank as a Director nominated by Govt. of Bangladesh and held
various senior management positions in multinational and private commercial banks such as Trust Bank
Limited, Premier Bank Limited and Industrial Promotion & Development Company of Bangladesh Ltd.,
United Commercial Bank Ltd., American Express Bank Ltd., Standard Chartered Bank and ANZ Grindlays
Bank.
With a distinctive academic record, he holds graduation with Honours and post-graduation degree in
Economics from the University of Dhaka and an MBA degree from the Victoria University, Australia. He
is a gold medal recipient as the best all-round cadet of the Faujdarhat Cadet Collage and a National
Debate Champion
Mr. Shah Md. Moinuddin

DMD & Head of International Division
Mr. Shah Md. Moinuddin, presently discharging responsibility as Deputy Managing Director and Head of
International Division from March 01, 2015 joined IFIC Bank Limited on July 16, 1986 as Probationary
Officer.
During his long association with IFIC Bank for about 33 years, he has shown his credibility and dynamic
leadership holding different managerial positions in different capacities. Mr. Moinuddin was posted at
different Branches in different capacities during his long career including Principal Branch and Federation
Branch Manager of IFIC Bank Limited.
He completed his graduation & post-graduation from University of Dhaka major in Accounting.
42
Mr. Md. Nurul Hasnat
DMD & Head of Business
Mr. Nurul Hasnat has been discharging his responsibility as Deputy Managing Director and Head of
Business since January 01, 2018. He joined IFIC Bank Limited as Executive Vice President on February
27, 2013.
Mr. Hasnat has 30 years long Banking experience which started in BCCI in February 1989. He also
served in Eastern Bank, South East Bank and Trust Bank in different capacities. In IFIC Bank, he served
as Branch Manager of Principal Branch, Federation Branch and Gulshan Branch and made notable
contribution in their business portfolio.
Mr. Nurul Hasnat completed his post-graduation on Human Resource Management and also completed
specialized courses on International Trade from School of Finance, United Kingdom.
Mr. Syed Mansur Mustafa

DMD & CCO
Mr. Syed Mansur Mustafa is holding the position of DMD & Chief Credit Officer of the Bank since July 03,
2018. Earlier he joined as Senior Executive Vice President on April 06, 2015. He started his career as
Probationary Officer of AB Bank in 1996 and also served for Trust Bank.
Mr. Mustafa has an MBA from Institute of Business Administration and post-graduation in International
Relation from the University of Dhaka.
Mr. Md. Monitur Rahman

DMD & COIT
Mr. Md. Monitur Rahman joined the Bank on August 30, 2018 as DMD and Chief of Operations &
Information Technology.
Mr. Rahman has long 25 years of experience in Standard Chartered Bank and National Board of
Revenue. His core expertise is Technology and Operational Governance, Infrastructure Development,
Project Management and Service Quality for Customer.
Mr. Rahman has an MBA major in Finance from North South University and graduation major in Electrical
& Electronic Engineering (EEE) from Bangladesh University of Engineering and Technology (BUET).
Mr. K. A. R. M. Mostofa Kamal

Head of Human Resource Management
Mr. Khan Abu Roushan Mohammad Mostofa Kamal joined IFIC Bank Limited on June 1, 2015 as Head
of Human Resource Management.
Mr. Mostofa Kamal brings 34 years' rich experience from the Bangladesh Army. He served the
Bangladesh Army as a senior professional in many different capacities and gathered experience in human
resource management, business process, security and logistics in strategic level. He also has exposure
in business projects and organizations with working experience as a member of the Management of Trust
Bank Limited, Army Welfare Trust, Trust Technical Training Institute, Sena Kalyan Songstha and
Radisson Blu Dhaka Water Garden, Dhaka. He also worked in the Kuwait Armed Forces on deputation.
43
Mr. Kamal has a Bachelor of Arts from Chittagong University and Masters in Defense Studies from the
National University. He also completed his NDC and PSC. Apart from the above, he attended a number
of seminar, workshop and trainings both at home and abroad.
Mr. Md. Rafiqul Islam

Head of Loan Performance Management
Mr. Md. rafiqul Islam has joined IFIC Bank Ltd. on December 2014. At present he is serving as SEVP &
Head of Loan Performance Management of IFIC Bank Ltd. He has started his banking career as
Probationary oficer of AB Bank Ltd. in 1998. Later on he served in Trust Bank Ltd. in different mid-level
position inclduing Manager of Corporate Branch.
Mr. Islam has completed MBM. Prior to this he did M.A in English Literature from University of Dhaka.
Mr. M. Mozibar Rahman

Head of Internal Control & Compliance
Mr. M. Mozibar Rahman has been currently discharging the responsibility as Head of Internal Control &
Compliance since October 18, 2020. He joined IFIC Bank Limited as Probationary Officer on 30th June
1986.
In his long association with IFIC Bank for about 34 years, Mr. Rahman held different key positions in the
Bank, such as Branch Manager, Head of International Banking, Head of Managing Director’s Secretariat,
Head of Credit Administration etc.
Mr. Rahman completed his post-graduation on Human Resource Management from International Islamic
University Chittagong (IIUC). He is a Diplomaed Associate of Institute of Bankers, Bangladesh (DAIBB).
Mr. Dilip Kumar Mandal

Chief Financial Officer
Mr. Dilip Kumar Mandal joined IFIC as Deputy Chief Financial Officer on 19 November 2014 and currently
holding the position of Chief Financial Officer since 13 December 2015. Mr. Mandal’s corporate and
management experience encompasses nearly 15 years wherein he has served in various positions of
progressively higher rank. His expertise lies in the field of Accounting Systems Development, Fiscal
Management, Budgetary Control and Financial Reporting along with proven record of developing and
implementing financial and operations controls to improve overall profitability of the organization.
Prior to joining IFIC, he served as Chief Financial Officer at Industrial Promotion and Development
Company of Bangladesh Ltd. (IPDC) and Bangladesh Finance & Investments Co. Ltd. Before moving to
corporate arena, Mr. Mandal worked at KPMG Bangladesh as a Senior Audit Supervisor. Mr. Mandal is
a qualified Chartered Accountant and fellow member of the Institute of Chartered Accountants of
Bangladesh (ICAB). He has completed both his Masters and Bachelors in Accounting from University of
Dhaka.
Mr. Mokammel Hoque

Company Secretary
Mr. Md. Mokammel Hoque, Company Secretary of IFIC Bank Limited, is also the Corporate Secretary of
the Subsidiaries and Foreign Affiliates of the Bank. His former employers were United Commercial Bank
Limited, Grameenphone Limited and Trust Bank Limited. Having degree with MDP on Competitive
Business Strategy & Innovation, Master of Business Administration in Finance & Banking and Master of
44
Commerce in Management, he is the Fellow Chartered Secretary and Adjunct Faculty of ICSB. He
attended various trainings/seminars/professional courses in the shape of future Board, corporate
citizenship & cultural shift, RegTech for smart future, effectiveness of Board, toxic behavior evaluation,
various strategies & corporate frameworks analysis, corporate governance – factor analysis, dispute &
crisis management, the company secretary as change maker, agility into the boardroom, strategies to
enhance mental wellbeing at work, challenges of various committees, company structure – present &
future, etc. at home and abroad.
45
G. TOTAL ASSET, TANGIBLE ASSETS AND NET WORTH
Items as of 30 September 2021

Total Asset 409,241,034,472
Tangible Asset 5,829,032,082
Net Worth 29,861,134,648
H. DESCRIPTION OF ASSETS AND LIABILITIES
Assets (as of 30 September 2021)
Cash, Bank Balances, Money at Call on Short Notice and Investments
Items Total Asset % of Total Asset

Cash 21,099,872,540 5.16%
Balance with other banks and financial institutions 5,987,461,188 1.46%
Money at call and on short notice 4,300,000,000 1.05%
Investments 63,216,191,460 15.45%
Loans and advances 293,842,919,107 71.80%
Fixed assets including premises, furniture and fixtures 7,596,563,802 1.86%
Other assets 13,049,551,575 3.19%
Non-banking Assets 148,474,800 0.04%
Total Assets 409,241,034,472 100.00%
Loans and Advances
Item Amount in BDT

Loans, Cash Credit, Overdrafts etc.
Inside Bangladesh
Term loan industrial 19,335,257,248
Term loan consumer finance 175,293,992
Agricultural loan 350,564,407
Term loan women entrepreneur 31,165,834
Term loan-others 90,876,944,689
House building loans 53,699,295,324
Staff loan 1,100,631,944
Transport loan 56,891,832
Loan general 3,319,319,908
Demand loan 7,714,389,245
Overdrafts 69,655,784,550
Cash credit 22,555,217,730
Credit card finance 139,182,199
Loan against trust receipt (LTR) 3,039,871,406
46
Item Amount in BDT
Lease finance 199,789,711
Margin loan 3,960,747,039
Outside Bangladesh
Term Loan-Foreign Currency (OBU) 1,799,023,189
Bills Purchased and Discounted
Payable in Bangladesh 15,133,681,240
Payable outside Bangladesh 699,867,620
Total Loans and Advances 293,842,919,107
Fixed Assets
Items Amount in BDT

Land 2,423,609,559
Buildings and premises 1,902,617,204
Right of Use Assets 1,981,900,504
Wooden furniture 322,716,174
Steel furniture 133,312,431
Computer equipment 1,162,625,267
Electrical & gas equipment 1,271,660,218
Office equipment 347,294,435
Leasehold improvement 691,806,327
Vehicles 208,353,474
Soft furnishing 13,119,919
Software 1,120,365,197
Capital work in progress* 171,351,376
Total Cost 11,750,732,085
Less: Accumulated depreciation 4,154,168,284
Total Written Down Value 7,596,563,802
Total Fixed Assets 7,596,563,802
*Capital work in progress represents the amount paid for EKYC Solution, Computers, Router and Fusion
Banking Essence.
Other Assets
Items Amount in BDT

Stationery and stamps 42,564,602
Suspense account 1,124,569,918
Advance, deposits and prepayments 9,336,230,208
Accrued interest & other income receivable 1,561,177,810
Deferred tax assets 808,950,441
Dividend Receivable and others 176,058,596
Total Other Assets 13,049,551,575
47
Liabilities (as of 30 September 2021)
Borrowings from other banks, financial institutions and agents
Items Amount in BDT

(a) Inside Bangladesh 14,725,000,083
(b) Outside Bangladesh 188,335,980
Total (a + b) 14,913,336,063
Deposits and Other Accounts
Items Amount in BDT

Current accounts and other accounts 117,658,933,278
Bills Payable 2,038,833,262
Savings bank deposits 26,203,048,270
Fixed deposits 179,800,341,797
Total 325,701,156,606
Subordinated Debt
IFIC Bank 1st Subordinated Debt:

Subscribed Amount Outstanding Amount
Items
in BDT In BDT
Sonali Bank Limited 1,000,000,000 400,000,000
Janata Bank Limited 1,000,000,000 400,000,000
Rupali Bank Limited 1,000,000,000 400,000,000
Agrani Bank Limited 500,000,000 200,000,000
Total 3,500,000,000 1,400,000,000
IFIC Bank 2nd Subordinated Debt:

Subscribed Amount Outstanding Amount
Items
in BDT In BDT
Agrani Bank Limited 1,500,000,000 1,500,000,000
Janata Bank Limited 1,000,000,000 1,000,000,000
Dutch Bangla Bank Limited 1,000,000,000 1,000,000,000
Eastern Bank Limited 1,000,000,000 1,000,000,000
Mercantile Bank Limited 500,000,000 500,000,000
Total 5,000,000,000 5,000,000,000
Total outstanding of the IFIC bank Subordinated Debt: 6,400,000,000
48
Other Liabilities
Items Amount in BDT

Specific provision for classified loans and advance 2,923,864,788
General provision for unclassified loans and advances 4,976,149,350
Special general provision COVID-19 1,200,000,000
Provision for loans and advance 9,100,014,138
Provision for off balance sheet items 585,171,318
Provision for diminution in value of investments 355,661,414
Provision for nostro account 10,734,525
Provision for other assets 469,068,286
Provision for loans, investments and other assets 10,520,649,681
Provision for taxation 10,277,495,572
Interest suspense accounts 9,544,496,868
Incentive bonus 1,090,182
Start-up fund 5,622,475
Lease Liability 973,894,722
Rebate to good borrowers 21,870,000
Interest payable on borrowing and bond 101,751,623
Accrued expenses 278,367,418
Withholding Tax payable to government 207,572,415
Withholding VAT payable to government 92,159,748
Excise duty payable to government 12,647,646
Revaluation of investment abroad 30,946,297
Payable against Govt Bond & Sanchaypatra 99,747,332
Others 197,095,175
32,365,407,155
49
I. DESCRIPTION OF PREVIOUSLY ISSUED DEBT OR SECURITIES
i. Description of previously issued debt instruments:
IFIC Bank 1st Subordinated Bond:
The Bank has issued 1st unsecured, non-convertible, floating rate Subordinated Bond of BDT 3,500
Million on 29 May 2016 in the local market under Private Placement to strengthen the Bank’s capital base
(Tier-II Regulatory Capital) in line with the Basel framework of Bangladesh Bank. The tenure of the bond
is 7 years of which principal has been redeemed annually in instalments of 20% per year commencing at
the third (3rd) anniversary of the bond on 29 May 2019. The Bond was fully subscribed and upon
redemption of BDT 2,100 million, current outstanding principal of the bond stands at BDT 1,400 million.
The final maturity of the bond will be on 28 May 2023, at the end of seventh (7th) year from the Issue
Date.
IFIC Bank 2nd Subordinated Bond:

The Bank has issued 2nd unsecured, non-convertible, floating rate Subordinated Bond of BDT 5,000
Million on 14 September 2021 in the local market under Private Placement to strengthen the Bank’s
Capital base (Tier II Regulatory Capital) in line with the BASEL framework of Bangladesh Bank. The
tenure of the bond is 7 years of which principal will be redeemed annually in instalments of 20% per year
commencing at the third (3rd) anniversary of the bond on 14 September 2024. The Bond was issued and
fully subscribed on 14 September 2021 and the final maturity of the bond will be on 13 September 2028,
at the end of seventh (7th) year from the Issue Date.
The compliance status of the issues as at 30 September 2021 is provided below:
Date Figure in BDT Million

Issue & Defa
Sl Name of Date of IM issue of Maturity
Subscript Redem Outstan ult, if
No the issue Consent Date subscr Period
ion ption ding any
iption
Amount Amount amount
Non-
Convertibl 29-
28-Dec- 28-Dec- 28-May-
1 e Sub- May- 3,500 2,100 1,400 None
15 15 23
ordinated 16
Bond
Non-
Convertibl 14-
30-Jun- 05-Jul- 13-Sep-
2 e Sub- Sep- 5,000 - 5,000 None
21 21 28
ordinated 21
Bond
The compliance status of the issue is provided below:

ii. Description of previously issued equity securities:
Year of
SL Type of Issue Brief Description of the Issue
Issue
The Bank raised BDT 7.80 Million through initial public offering
1 IPO 1986 in 1986 and issued 78,000 ordinary shares of BDT 100.00
each.
The Bank offered 1R:2 rights share (i.e. one rights share
against two existing share held on the record date) in 1990 and
2 Rights Issue 1990
raised BDT 44 Million where a total of 440,000 ordinary shares
of BDT 100.00 each were issued by the Bank.
The Bank offered 1R:1 rights share (i.e. one rights share
against one existing share held on the record date) in 2017 and
3 Rights Issue 2017
raised BDT 5,638.22 Million where a total of 563,821,907
ordinary shares of BDT 10.00 each were issued by the Bank.
50
14. AUDITED FINANCIAL STATEMENTS OF THE ISSUER, IFIC BANK
LIMITED
a. Balance Sheet (as of 30 September 2021)
51
52
b. Profit & Loss Account (as of 30 September 2021)
53
c. Cash Flow Statement (as of 30 September 2021)
54
d. Cash Flow Statement (as of 30 September 2021)
For detailed Audited Financials as at 30 September 2021, please see Annexure 2

15. BRIEF OVERVIEW AND COMPARATIVE FINANCIAL STATEMENTS
IFIC Bank is a banking company incorporated in the People's Republic of Bangladesh with limited liability.
It was set up at in 1976 as a joint venture between the Government of Bangladesh and sponsors in the
private sector with the objective of working as a finance company within the country and setting up joint
venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private
sector, IFIC was converted into a full-fledged commercial bank. A total of 157 branches and 589
Uposhakhas of IFIC are dedicated in providing services to the clients with the help of a skilled and
dedicated workforce.
Comparative financial statements for last three years of IFIC Bank Limited is given below.
Balance Sheet
30 September 31 December 31 December 31 December
Particulars
2021 2020 2019 2018
PROPERTY AND ASSETS
Cash 21,099,872,540 18,496,393,531 18,056,029,773 16,020,741,583
Cash in hand (including foreign currency) 5,418,380,906 4,088,663,229 2,872,338,679 2,899,030,289
Balance with Bangladesh Bank and its agent
bank(s) (including foreign currency) 15,681,491,634 14,407,730,302 15,183,691,094 13,121,711,294
Balance with other banks and financial institutions

5,987,461,188 8,068,327,513 5,637,834,204 8,118,980,917
In Bangladesh 4,117,557,279 6,682,557,302 4,014,719,294 6,823,590,588
Outside Bangladesh 1,869,903,909 1,385,770,211 1,623,114,910 1,295,390,329
Money at call and on short notice 4,300,000,000 2,330,000,000 910,000,000 3,970,000,000

Investments 63,216,191,460 58,100,080,583 47,216,443,756 32,664,400,101
Government securities 51,974,111,543 46,979,431,855 41,369,255,890 27,258,506,647
Other investments 11,242,079,917 11,120,648,728 5,847,187,866 5,405,893,454
Loans and advances 293,842,919,107 261,697,427,473 232,523,441,067 210,932,291,735

Loans, cash credit, overdrafts etc. 278,009,370,247 247,051,243,375 221,562,693,268 198,670,768,028
Bills purchased and discounted 15,833,548,860 14,646,184,098 10,960,747,799 12,261,523,707
Fixed assets including premises, furniture and fixtures

7,596,563,802 7,537,124,576 6,430,431,620 5,445,835,394
Other assets 13,049,551,575 11,426,737,686 9,606,537,605 9,003,060,522
Non-banking assets 148,474,800 373,474,800 373,474,800 373,474,800
Total assets 409,241,034,472 368,029,566,161 320,754,192,825 286,528,785,052
LIABILITIES AND CAPITAL

Liabilities
Borrowing from other banks, financial 14,913,336,063 13,021,794,012 8,215,860,335 9,969,432,278
Subordinated debt 6,400,000,000 2,100,000,000 2,800,000,000 3,500,000,000
Deposits and other accounts 325,701,156,606 296,341,568,095 258,180,418,372 226,259,493,148
Current deposit and other accounts 117,658,933,278 92,689,795,114 56,902,055,915 40,880,141,888
Bills payable 2,038,833,262 2,547,263,402 1,840,433,536 2,066,079,056
Savings bank deposits 26,203,048,270 25,343,706,980 23,299,407,700 24,711,065,947
Fixed deposits 179,800,341,797 175,760,802,599 176,138,521,221 158,602,206,257
Other liabilities 32,365,407,155 28,742,281,946 25,014,936,765 23,122,200,254
Total liabilities 379,379,899,825 340,205,644,052 294,211,215,472 262,851,125,680
Capital/Shareholders' equity
Paid up capital 17,008,675,610 16,198,738,680 14,726,126,080 13,387,387,350
Statutory reserve 6,864,775,853 6,864,775,853 6,531,903,475 5,696,418,313
General reserve 155,071,397 155,071,397 155,071,397 155,071,397
Revaluation reserve against securities 49,443,201 107,849,126 50,121,137 13,108,847
Revaluation reserve against fixed assets 115,314,704 115,314,704 115,314,704 115,314,704
Foreign currency translation reserve 96,259,657 134,088,406 43,867,936 43,292,875
Surplus in profit and loss account 5,571,580,495 4,248,076,927 4,920,565,744 4,267,059,068
Attributable to equity holders 29,861,120,917 27,823,915,093 26,542,970,473 23,677,652,554
Non-controlling interest 13,731 7,016 6,880 6,818
Total shareholders' equity 29,861,134,648 27,823,922,109 26,542,977,353 23,677,659,372
Total liabilities and shareholders' equity 409,241,034,472 368,029,566,161 320,754,192,825 286,528,785,052
57
Profit & Loss Statements
1 January to 1 January to 1 January to 1 January to

Particulars Note 30 September 31 December 31 December 31 December
2021 2020 2019 2018
Interest income 16,349,214,303 21,170,256,030 24,478,436,655 19,011,904,653
Interest paid on deposits, borrowings etc. 11,611,578,354 18,292,521,314 18,028,004,167 14,404,699,530
Net interest income 4,737,635,949 2,877,734,717 6,450,432,488 4,607,205,123
Investment income 3,181,651,801 3,501,469,298 2,458,206,971 2,044,196,628
Commission, exchange and brokerage 1,822,290,522 1,558,776,252 1,698,099,119 1,616,290,324
Other operating income 128,688,973 605,362,198 434,472,898 491,185,391
5,132,631,296 5,665,607,748 4,590,778,988 4,151,672,343
Total operating income 9,870,267,245 8,543,342,465 11,041,211,476 8,758,877,466
Salary and allowances 2,109,564,468 2,560,507,662 2,576,223,530 2,580,872,443
Rent, taxes, insurance, electricity etc. 480,822,432 418,605,546 579,414,593 780,871,636
Legal expenses 11,840,440 10,712,980 10,070,711 12,493,496
Postage, stamp, telecommunication etc. 77,244,720 73,869,808 63,669,117 63,263,272
Stationery, printing, advertisement etc. 277,387,778 358,974,150 440,303,684 377,063,537
Managing Director's salary 18,870,250 20,975,250 15,720,000 15,120,000
Directors' fees 3,266,400 1,892,000 1,854,500 1,911,000
Auditors' fees 3,009,168 3,051,750 3,509,093 1,990,133
Charges on loan losses - 758,054,030 109,642,716
Depreciation and repair of bank's assets 892,727,326 1,070,408,309 741,346,537 484,602,840
Other expenses 827,550,731 1,065,997,697 873,877,546 736,982,153
Total operating expenses 4,702,283,713 5,584,995,153 6,064,043,341 5,164,813,226
Operating profit 5,167,983,532 2,958,347,312 4,977,168,135 3,594,064,240
Share of profit of joint ventures/associates40.a 348,812,269 522,479,151 553,833,085 400,125,308
Profit before provision 5,516,795,801 3,480,826,463 5,531,001,220 3,994,189,548
Provision for loans, investments & other
Provision for loans and advance 1,477,740,648 1,498,673,893 774,041,752 820,009,910
Provision for diminution in value of investments 1,185,653 (300,613,649) 130,186,221 178,461,306
Other provisions 16,686,622 35,971,496 42,052,379 36,959,400
Total provision 1,495,612,923 1,234,031,740 946,280,352 1,035,430,616
Profit/(Loss) before taxes 4,021,182,878 2,246,794,722 4,584,720,868 2,958,758,932
Provision for taxation
Current tax 1,960,011,461 975,923,486 1,721,922,569 1,100,427,296
Deferred tax expense/(income) (77,892,270) 137,874,939 35,067,669 208,827,364
1,882,119,190 1,113,798,425 1,756,990,238 1,309,254,660
Net profit after taxation 2,139,063,688 1,132,996,297 2,827,730,630 1,649,504,272
Net profit after tax attributable to:

Equity holders of the Bank 2,139,062,973 1,132,996,161 2,827,730,568 1,649,504,123
Non-controlling interest 715 136 62 149
2,139,063,688 1,132,996,297 2,827,730,630 4,623,795,459
-
Profit available for appropriation:
Retained earnings brought forward from previous year4,017,551,810 4,920,565,744 4,267,059,068
Add: Net profit after tax (attributable to equity holders of2,139,062,973
the Bank) 1,132,996,161 2,827,730,568 1,649,504,123
6,156,614,782 6,053,561,905 7,094,789,636 6,273,299,582
Appropriations:
Statutory reserve - 332,872,378 835,485,162 571,877,584
General reserve - - - -
Dividend 809,936,930 1,472,612,600 1,338,738,730 1,434,362,930
809,936,930 1,805,484,978 2,174,223,892 2,006,240,514
Retained surplus 5,346,677,852 4,248,076,927 4,920,565,744 4,267,059,068
Earnings Per Share (EPS) 1.26 0.70 1.75 1.12
58
Cash Flow Statements
1 January to
1 January to 31 1 January to 31 1 January to 31
Particulars 30 September
December 2020 December 2019 December 2018
2021
Cash flows from operating activities
Interest received 18,543,416,633 24,404,994,090 26,971,611,707 20,836,219,004
Interest payments (11,349,909,778) (19,444,860,529) (16,740,005,553) (12,955,875,376)
Dividend received 45,791,665 105,135,607 211,291,220 48,101,207
Fees and commission received 1,455,436,245 1,567,381,555 1,698,099,119 1,668,289,873
Recoveries of loans and advances previously written-off 134,470,143 161,055,817 601,783,125 165,713,392
Cash payments to employees (2,129,006,536) (2,831,594,912) (2,582,443,530) (2,606,492,443)
Cash payments to suppliers (142,957,317) (386,808,355) (486,915,656) (460,646,290)
Income taxes paid (1,453,548,630) (1,261,407,373) (1,702,545,421) (1,119,101,633)
Receipts from other operating activities 833,160,955 567,756,329 438,702,331 495,324,043
Payments for other operating activities (1,895,737,734) (1,703,770,755) (1,648,751,205) (1,716,485,152)
Operating cash flows before changing in operating assets and 4,041,115,646
liabilities 1,177,881,474 6,760,826,137 4,355,046,625
Increase/(decrease) in operating assets and liabilities
Statutory deposits -
Loans and advances to other banks -
Loans and advances to customers (31,677,066,297) (31,668,464,339) (23,122,311,754) (27,338,068,246)
Other assets (171,942,035) (422,065,491) (198,632,806) 204,015,482
Deposits from other banks 1,532,601 (8,448,134,949) (3,167,323,151) (8,875,257,126)
Deposits from customers 29,968,378,045 47,606,024,704 33,804,194,781 33,534,508,943
Other liabilities (543,633,174) 333,961,325 (183,655,716) 402,549,407
(2,422,730,859) 7,401,321,250 7,132,271,354 (2,072,251,540)
Net cash flows from/(used in) operating activities 1,618,384,787 8,579,202,724 13,893,097,492 2,282,795,086
Cash flows from investing activities

Net proceeds/(payments) from sale/(purchase) of Government securities
(5,052,637,513) (5,552,113,576) (14,072,890,953) (3,309,748,707)
Net proceeds/(payments) from sale/(purchase) of securities (121,431,189) (4,668,979,098) (82,932,707) (81,973,557)
Purchase of property, plant & equipment (742,241,518.83) (937,430,303) (632,524,390) (2,195,800,256)
Proceeds from sale of property, plant & equipment 213,971,031 2,327,116 2,609,682 2,474,163
Net cash flows from/(used in) investing activities (5,702,339,190) (11,156,195,861) (14,785,738,368) (5,585,048,358)
Cash flows from financing activities

Borrowing from other banks, financial institutions and agents 6,191,542,051 6,966,197,110 (2,453,571,943) 1,495,851,530
Payment against lease obligation (79,987) (194,051,377) (137,348,282) (2,839,044)
Net cash flows from/(used in) financing activities 6,191,462,064 6,772,145,733 (2,590,920,225) 1,493,012,486
Net increase/(decrease) in cash (A+B+C) 2,107,507,661 4,195,152,596 (3,483,561,101) (1,809,240,786)
Effects of exchange rate changes on cash and cash equivalents 385,553,123 96,038,871 (21,451,422) (23,814,371)
Opening balance of cash and cash equivalents 28,898,170,044 24,606,978,576 28,111,991,100 29,945,046,257
Closing balance of cash and cash equivalents (D+E+F) 31,391,230,828 28,898,170,044 24,606,978,577 28,111,991,100
Closing cash and cash equivalents

Cash in hand 5,418,380,906 4,088,663,229 2,872,338,679 2,899,030,289
Balance with Bangladesh Bank and its agents bank 15,681,491,634 14,407,730,302 15,183,691,094 13,121,711,294
Balance with other banks and financial institutions 5,987,461,188 8,068,327,513 5,637,834,204 8,118,980,917
Money at call and on short notice 4,300,000,000 2,330,000,000 910,000,000 3,970,000,000
Prize bonds 3,897,100 3,449,000 3,114,600 2,268,600
31,391,230,828 28,898,170,044 24,606,978,577 28,111,991,100
59
16. RATIOS FOR THE LAST THREE YEARS
Key Ratios of IFIC Bank Limited (standalone) for the last five years have been presented below.
Sept
Ratios 2020 2019 2018
2021
Credit Deposit Ratio 82.84% 82.40% 84.08% 86.83%
Debt to Equity Ratio 14.13 13.41 11.89 11.80
Debt to Total Assets Ratio 0.93 0.93 0.92 0.92
Operating Profit Margin % 23.24% 10.86% 16.11% 15.12%
Net Profit Margin % 7.62% 2.10% 7.69% 6.09%
Cost to Income Ratio % 48.50% 65.6% 54.0% 56.7%
Return on Assets – ROA% 0.42% 0.2% 0.8% 0.6%
Return on Equity – ROE% 6.21% 2.23% 9.94% 7.4%
Non Performing Loan % 3.93% 3.97% 5.37% 6.16%
Tier I Capital Ratio % 8.71% 9.42% 10.28% 9.80%
Tier II Capital Ratio % 4.39% 2.82% 2.52% 2.83%
Capital Adequacy Ratio % 13.11% 12.24% 12.80% 12.63%
Earnings Per Share (EPS) in BDT 0.95 0.35 1.51 1.07
Price Earnings Ratio 16.87% 43.79 6.56 10.22
Net Asset Value/Share (NAV) in BDT 15.74% 15.57 15.18 15.02
Dividend Coverage Ratio N/A 0.69 1.66 1.17
60
17. CREDIT RATING SUMMARY OF THE ISSUE AND ISSUER
Credit Rating of Issuer: IFIC Bank Limited
Date of Rating
Valid Till Long Term Short Term Rated By Outlook
Declaration Type
30 June 30 June Entity
AA ST-2 ECRL* Stable
2021 2022 Rating
*ECRL- Emerging Credit Rating Limited
Rating Rational:
Emerging Credit Rating Limited (ECRL) has affirmed AA (Pronounced as Double A) long term credit
rating and ST-2 short term credit rating to International Finance Investment and Commerce Bank Limited
(hereinafter referred to as “IFICBL” or “The Bank”) based on audited financials of FY2017-2020 and other
available information up to the date of rating declaration. The outlook on the rating is Stable. The ratings
are consistent with ECRL‟s methodology for this type of company.
The rating reflects the strengths of the bank which is backed by favorable growth of loans & advances,
wide network of branches and experienced management team. However, ECRL is concerned about the
deficit of Capital to Risk Weighted Asset Ratio (CRAR) with conservation buffer which was below the
regulatory requirement, significant decline in post-tax profit, high level of large loan and reschedule loan
and additional provision required in next three years to cover up the deficit. Moreover, ECRL is concerned
about the real scenario of NPL which will take place after the withdrawal of classification bar imposed by
BB for the pandemic time.
Covid-19 pandemic has critically worsened overall economic and business environment in the country
over a year. The banking industry has been facing many challenges like slow growth of credit, recovery
of loans and advance, excess liquidity, gloomy business performances of business entities due to the
Covid-19 pandemic throughout the year 2020. Moreover, the second wave of the Covid-19 pandemic
might further jeopardize the overall economic and business environment in the country like the previous
year. With a view to facilitating the existing business environment and to help the sector to recover from
the impact of Covid-19, Bangladesh Bank relaxed the loan classification for the year 2020 (Jan-Dec) and
also for the quarter April to June 2021 to facilitate businesses of the country and to encourage
participation of the banks in disbursing loans to affected business.
BB has also increased the cap of ADR/IDR by 2% to increase the lendable fund and to increase liquidity
of the bank, BB has reduced the CRR (Cash reserve requirement) from 5% to 3.5% on daily basis and
5.5% to 4% on bi-weekly basis and repurchase rate (repo) reduced to 4.75% from 5.25%, reverse repo
rate to 4% from 4.75%. These initiatives improved the liquidity position of banks. The banking sector is
infiltrated with all-time high excess liquidity of BDT 2,047 billion as on December 2020 due to low credit
growth and also initiatives taken by the regulator. The year was started with excess liquidity of BDT 1,034
billion (end of January 2020) but at the end of the year the excess liquidity became almost double.
The asset book of the bank soared to BDT 363,411.77 million in FY2020 experiencing a 14.66% growth
during the period as opposed to a growth of 11.97% in FY2019. Historically significant component of
overall assets base of the bank, gross loans, witnessed a favorable growth of 14.03% in FY2020 in
comparison to previous year growth of 10.47% and finally stood at BDT 260,650.29 million. In addition to
this, the bank also enlarged its investment portfolio over the last three years which has also recorded a
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growth of 15.87% in the FY2020 compare to prior financial year which encompasses 14.51% of total
assets profile.
Though the Non-Performing Loan (NPL) of the bank shrank by BDT 1,919.71 million or 15.65% to BDT
10,345.76 million but this has occurred as the bank had to suspend the usual practice of classifying loan
in accordance with the central bank‟s directive (From Jan to Dec) amidst Covid-19 outbreak in 2020. As
a result, the NPL ratio of the bank moderately decreased to 3.97% in FY2020 (FY2019: 5.37%; FY2018:
6.16%). Notably, such NPL ratio is slightly below compared to the industry‟s average NPL ratio for private
commercial bank (industry NPL/NPI ratio 4.82% as at December 31, 2020). However, after the
moratorium period ended, it is expected that the NPL would increase in the forthcoming years as so many
businesses are facing difficulty to operate their business. By the end of FY2020 sub-standard, doubtful
and bad loans comprised of 26.90%, 4.48% and 68.63% of overall NPLs respectively. Moreover, it has
been observed that in FY2020, BDT 4,360.02 million loans was in bad/loss status for more than two years
representing 42.14% of total bad/loss loans which is a concerning factor for the bank as it might be difficult
to recover that significant amount of loan in upcoming period.
Besides, the bank has rescheduled BDT 39,855.91 million loans in the FY2020 which is 25.00% higher
than the prior financial year and the bank did not write off any bad loan during the year. The reschedule
loan was 15.29% of the loan book of the bank while NPLs and rescheduled loans together represented
19.26% of the loan book in FY2020 as compared to 19.31% in the FY2019. On the other hand, the bank‟s
exposure to large loans (exceeding 10% of bank‟s capital) has been the highest in FY2020 compare to
prior three financial years which accounted for 58.43% of the bank‟s gross loans and advances which
was 46.10% in the prior financial year adding another matter of concern for the bank. Though the bank
has maintained provision against total loans and advances amounted to BDT 7,406.27 million in the
FY2020 but according to Bangladesh Bank letter dated on 31 March 2021 the bank has provision shortfall
of BDT 3,785.00 million against other unclassified loans and advances which is required to maintain by
2023.
In FY2020, the bank has a deficit of CRAR with conservation buffer of BDT 664.88 million due to decrease
in retained earning which has hindered the growth of Tier-I capital and ultimately the growth of total eligible
capital whereas risk-weighted assets grew by 12.22% and thus the CRAR of the bank edge down to
12.24% in FY2020 from 12.80% in the prior year which is slightly below than the regulatory ceiling of
minimum capital requirement with capital conservation buffer of 12.50% of total risk weighted assets.
Moreover, this is likely that the risk weighted assets of the bank will further increase after the relaxation
of classification of the loans and the situation would even worsen if the net interest income consistently
falls due to the pandemic situation and impact of interest cap. As per correspondence with the
management, the bank is in a process of issuing Subordinated Bond of BDT 5,000 Million, for which they
have already received NOC from Bangladesh Bank and approval from BSEC is under process. Besides,
the Board of Directors of the Bank has also approved the issuance of BDT 10,000 million perpetual Bond
as additional Tier I capital of the Bank for further expansion of the Business, application of which is under
process. Upon inclusion of these bonds CRAR of the Bank will be increased with substantial limits.
IFICBL‟s deposit base has improved gradually over the years and in FY2020, bank’s total deposit base
recorded a good growth of 14.71%; highest in last three years whereas the credit portfolio experienced a
growth of 14.03%, resulted in loan to deposit ratio decreased to 82.75% in FY2020 from 84.08% in
FY2019, well below than the ceiling for loan to deposit ratio not more than 87% for General Banks as per
the Bangladesh Bank’s directive. To ensure the optimum profitability the bank is trying to reorganize its
deposit mix, as a result the bank’s concentration on high cost deposits i.e. Fixed Deposit is gradually
decreasing whereas the bank is more concentrating on low cost deposits like current deposit which is
reflected by its deposit mix over the last three years.
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In the FY2020, IFICBL has maintained CRR and SLR as per regulatory requirement whereas the bank
accounted a surplus CRR of BDT 1,351.15 million and a surplus SLR of BDT 15,703.93 million indicating
that the bank has excess liquidity to manage its position in stressful situation. However, as per liquidity
statement, the bank had liquidity gap of BDT 20,096.59 million in 1-3 month bucket, BDT 34,886.08 million
in 3-12 months bucket and BDT 14,647.33 million in above 5 years bucket respectively but considering
the cumulative liquidity gap, there was net cumulative surplus of BDT 25,216.95 million at the end of
FY2020.
In terms of profitability, in FY2020 the bank did not perform well as indicated by significant decline in net
interest income due to the impact of interest cap imposed by BB, Covid-19 pandemic situation as well as
high competition among the banks. During the year 2020, interest income of the bank squeezed
remarkably by 13.37% to stand at BDT 21,159.06 million due to implementation of maximum 9% interest
rate on loans and advances. On the other hand, the interest paid on deposits and borrowings experienced
an increase of 1.48% in FY2020 amounted to BDT 18,294.76 million; as a consequence the net interest
income lowered to BDT 2,864.30 million from BDT 6,397.88 million in FY2019, a significant 55.23% fall
in FY2020. To cope with the adverse impact of interest rate cap the bank marginally increased its
investments in government securities & shares by 15.87% than a year ago; as a result the bank‟s income
from investment rose by 31.54% to BDT 3,454.71 million in FY2020 and the non-interest income of IFICBL
has finally grew by 17.76% to BDT 5,560.30 million in FY2020 from BDT 4,721.86 million in FY2019.
And due to significant fall of net interest income, total operating income of the bank experienced a fall of
24.24% in FY2020 and for the first time among the reported years, non-interest income became the major
income source with encompasses 66.00% (FY2019: 42.46%) of total operating income whereas the net
interest income, core income of the bank comprised 34.00% of total operating income in the same period
as compared to 57.54% in FY2019. The shift has happened due to the interest rate cap as well as ongoing
Covid-19 pandemic. Whereas, total operating income of the bank has shrank by 24.24%, operating cost
of the bank shrank by only 7.94% resulted the cost to income ratio of the bank reach to 65.56% in FY2020
from 53.95% in FY2019.
Profit before provision and taxes of the bank decreased to BDT 2,901.65 million in FY2020 with a
declining rate of 43.33% from the previous year due to negative growth in net interest income along with
high operating expenses during the year. On the other hand, provision expenses of the bank increased
by 31.21% due to maintaining a large amount of specific general provision against the loans facilities for
which payment was deferred during to Covid-19 as per BB‟s directive. In contrast, due to recording a
large amount of tax expenses eventually narrowed the net profit of the bank significantly by 76.99% to
stand at BDT 562.25 million in the FY2020 derived from decrease in operating income of the bank
particularly the net interest income which is a major concern for potential growth of the bank.
ECRL views IFICBL‟s outlook as Stable considering the current business position, asset quality and
experience of management. However, ECRL is concerned about the decline in net interest income
caused by implementation of interest rate cap and uncertainty related to Covid-19 pandemic.
63
Credit Rating of the Issue: Floating Rate Non-Convertible Subordinated Bond
Date of
Valid Till Rating Type Long Term Rated By Outlook
Declaration
03 November 30 September
Initial AA3(Hyb) CRAB Stable
2021 2022
*CRAB- Credit Rating Agency of Bangladesh Limited
Credit Rating Report of IFIC Bank Limited 3rd Floating Rate Non-Convertible Subordinated Bond has
been done by Credit Rating Agency of Bangladesh Limited based on Audited Financial Statement up to
September 30, 2021 and other relevant quantitative as well as qualitative information up to the date of
rating declaration.
Rating Rationale:
Credit Rating Agency of Bangladesh Limited (CRAB) has assigned “AA3 (Hyb)” (pronounced Double A
three hybrid) rating in the long term to the IFIC Bank Ltd. issue of floating rate non-convertible subordinated
bond III (up to BDT 5,000 million), in line with CRAB’s standard notching practices. The assignment of the
final rating follows the completion of the bond issuance and receipts of documents conforming to the
information received at the time of issuing this rating. According to the basic features of the bond provided
to CRAB, the bonds will be permanently redeemed to zero at the end of 7th year after issue. The rating
outlook is stable, reflecting the outlook on the issuer’s credit rating. CRAB performed the rating based on
audited financial statement of the Bank as of 30 September 2021 and other relevant information up to the
date of rating declaration.
The Bank is planning to issue floating rate non-convertible subordinated bond III worth (up to BDT 5,000.0
million) having denomination of each BDT 10.0 million. Coupon rate of the Bank will be determined as an
average Fixed Deposit Rates of 6 months of all Private Commercial Schedule Banks (except Islami banks
and foreign banks) with a margin of 2.00% p.a., ranging 7.00% to 9.00% upon regulatory approval. The
final maturity of the Bonds will be at the end of seventh year of the Bonds from the Issue Date. The
subordinated bond has been structured for Tier 2 own fund eligibility according to BB regulation.
The issue may be closed in tranches, however regulatory approval will be taken for full Facility Amount.
Issue amount of a tranche will be a minimum of BDT 2,000.0 million. Issuer will make necessary regulatory
disclosure for the full amount of BDT 5,000.0 million post their internal approval from the competent
authority.
The subordinated debt has been structured for Tier 2 own fund eligibility according to BB regulation.
According to CRAB methodology, the subordinated bond is classified as capital due to regulatory override
within CRAB’s risk based capital calculation and is classified as debt for the agency’s financial leverage
calculations. The new issue is expected by CRAB to increase financial leverage on pro-forma basis to
13.32x from 13.24x based on 30 September 2021 figures.
The rating reflects the Bank’s strength in large branch network and substantial shareholding of the
government (around 32.75% shares). On the other hand, principal concerns of the Bank are continuation
of previous NPL and marginal risk weighted capital adequacy.
For detailed Credit Rating Report of the Issue, please see Annexure 3.
64
18. LATEST DEFAULT MATRIX AND TRANSITION STATISTICS OF CRC
CRAB Rating’s Default Matrix:
CRAB Rating’s Transition Matrix (2019-2020)
65
19. DESCRIPTION OF THE TRUSTEE: SENA KALYAN INSURANCE
COMPANY LIMITED (SKICL)
Company Overview
Sena Kalyan Insurance Company is a concern of Sena Kalyan Sangstha (SKS) of Bangladesh Armed
Forces. Born through the Great War of Liberation, Bangladesh Armed Forces have earned a time tested
confidence of the people of the country and with that sky high image, Sena Kalyan Insurance Company
Limited is designed to serve all sections of the people by upholding the principles of transparent
perception and corporate practices in the field of insurance. This new member of the Insurance Industry
of Bangladesh commenced its business since 10 September 2013 and has already emerged as a viable
and very promising general insurance company in the country. The shareholding structure of the company
is institutional, which is unique in our industry. The Board of Directors is composed of ex-officio Senior
military officers.
The Chairman of the Board is a serving Major General of Bangladesh Army, who is also the chairman of
Sena Kalyan Sangstha. All the shares of the company is owned by Sena Kalyan Sangstha, which has
already emerged as one of the viable business organizations in Bangladesh: This feature is a special
point of trust and confidence of our valued partners. The Chief of Army Staff of Bangladesh Army is the
chairman of the Board of Trustee and thus it adds value to our transparent dealing with the valued
partners. It is worth mentioning here that we are the insurer of US Bangla Airlines and very promptly
handled the claims of 2018 US-Bangla crash in Nepal.
Vision, Mission and Core Values

Vision: Sena Kalyan Insurance Company Limited will strive towards uploading the principles of
transparent perception and corporate practices thus turning to be a viably profitable oriented insurance
company in the country.
Mission: To pursue ongoing endeavours to become a leading insurance company by providing
innovative products and customer friendly services through highly motivated team of dedicated
professionals and ensure profits for the sponsors and shareholders.
Core Values:
 Trust
 Integrity
 Professionalism
Board of Directors:
1) Chairman : Major General Mohammed Saidul Islam ndc, psc
2) Vice Chairman : Air Cadre M Moyeenuddin, ndc, afwc, psc
3) Member : Brig Gen M A Mohy, psc
4) Member : Brig Gen Mirza Md Enamul Haque, ndc
5) Member : Brig Gen Md Mustafa Kamal, SGP
6) Member : Brig Gen Md Jamal Hossain, ndc, afwc, psc
7) Member : Brig Gen Md Shaheen Iqbal, afwc, psc
8) Member : Brig Gen Shafique Shamim, psc (Retd), MDS, MBA, CII (Cert)
9) Member : M. M. Mostafa Bilal, Independent Director
10) Member : Ahamed Ihteyaz Thamid, Independent Director
Executives of the Head Office:

 Chief Executive Officer : Brig Gen Shafique Shamim, psc (Retd), MDS, MBA, CII (Cert)
 Head of Marketing Department : Lt Col AKM Nazimul Islam, psc (Retd)
 Head of Underwriting Department : Pronab Kumar Saha
 Head of Accounts Department : Maloy Kumar Saha
 Head of Claim & Re-insurance Dept : Tajul Islam
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 Head of HR & Admin Department : Sqn Ldr Md Mostafa Zaman (Retd)
 Head of Information & technology Dept : Mohammad Shakhawat Hossain
Capital Structure:
Capital structure: The company started its business with a paid-up capital of BDT 240.00 Million against
an authorized capital of Tk. 1000.00 Million being sponsored by Sena Kalyan Sangstha. Shareholding
Structure: SKICL has a unique institutional shareholding structure, shown below:
Sl. Name No of Shares

Sena Kalyan Sangstha (SKS)
1. 23,999,994
Represented by: Major General Mohammed Saidul Islam ndc, psc
Air Cadre M Moyeenuddin, ndc, afwc, psc
2. 1
Nominated Director by SKS
Brig Gen M A Mohy, psc
3. 1
Brig Gen Mirza Md Enamul Haque, ndc
4. 1
Brig Gen Md Mustafa Kamal, SGP
5. 1
Brig Gen Md Jamal Hossain, ndc, afwc, psc
6. 1
Brig Gen Md Shaheen Iqbal, afwc, psc
7. 1
Total 24,000,000
Classes of Business:
We transact in all types of General Insurance Business. The company’s policies are liberal contracts free
from restrictive conditions and the premiums charged are strictly moderated consistent with absolute
security. Businesses being transacted are as follows:
Fire Business
1. Fire and its allied perils Insurance: Riot, Strike & Damage, Flood, Cyclone, Earthquake (Fire &
Shock), Malicious Damage, Explosion, Aircraft Damage, Impact Damage and Bursting of pipes
etc.
2. Industrial All Risks Insurance (IAR)
3. Commercial General Liability, Excess Liability
4. Hotel Owners’ All Risks Insurance (HOAR)
5. Household Insurance (Fire & Earthquake)
6. Power Plant Operational Package Insurance (PPOPI)
Marine Insurance
1. Marine Cargo Import (Steamer/Powered Vessel, Rail/Lorry/Truck, Air)
2. Marine Cargo Export (Steamer/Powered Vessel, Rail/Lorry/Truck, Air)
3. Inland Transit Insurance (Rail/Road, Water Borne)/ Goods in Transit Insurance)
4. Marine Hull (Comprehensive, Total Loss Only (TLO, Sue & Labour, Salvage)
5. Shipbuilders’ Insurance Policy
Engineering Insurance
1. Boiler and Pressure Vessel Insurance (BPV)
2. Cold Storage Comprehensive Insurance
3. Construction/Contractors’ All Risks Insurance (CAR)/ Erection All Risks Insurance (EAR)
4. Machinery Breakdown Insurance (MBD)
5. Electronic Equipment Insurance (EEI)
6. Deterioration of Stock (DOS)
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Motor Insurance (Comprehensive & Act Only Liability Insurance)
1. Private Vehicle (PV)
2. Commercial Vehicle (CV)
3. Motorcycle (MC)
Aviation Insurance
1. Hull, Spares & Equipment Insurance (CSL)
2. Liability/Excess Liability Insurance [TPL, PLL, CLL & CPA]
3. Hull War & Hull deductible Insurance
Miscellaneous/ Accident/ Liability Insurance

1. Overseas Mediclaim (Business & Holidays; Studies & Employment: OMP)
2. Burglary & House Breaking Insurance (BG)
3. Money Insurance (Cash-in-Business premises in strong room vault/safe, A.T.M. Booth and/or on
counter & Cash in Transit) for scheduled Banks.
4. Personal Accident Insurance ( Individual & Group) (PA)
5. Peoples’ Personal Accident (Individual & Group) (PPA)
6. Fidelity Guarantee Insurance (FG), Professional Indemnity Insurance (PII)
7. Commercial General Liability & Excess Liability Insurance (CGL)
8. Automobile Liability Insurance, Public & Product Liability Insurance
9. Workmen’s Compensation Insurance
10. Cash in Safe, Cash on Counter & Cash in Transit for other than scheduled Banks
11. Safe Deposit Box (Bank Lockers) All Risks Insurance (SDB )
12. Directors’ & Officers’ liability Insurance
13. Bankers’ Blanket Bond , Electronic & Computer Crime Insurance
14. Livestock/ Cattle Insurance Policy
Re-Insurance Protection
SKICL has started to give financial safety & security of its client. The company has good Treaty
arrangement with Sadharan Bima Corporation and from the very beginning has been taking proper re-
insurance protection from them. At present, hundred percent of the total portfolios of the company is re-
insured with the state-owned Sadharan Bima Corporation, Bangladesh, the only re-insurer of the country.
Besides, SKICL obtains Facultative re-insurance beyond its Treaty from SBC and is looking for in the
coming days to arrange reinsurance coverage with some noted overseas Re-insurers.
Claim Settlement:
SKICL believes that prompt settlement of claims is the most important strategy to procure insurance
business and earn confidence from the clients. Bearing this strategy in mind, priority is given to provide
prompt services to the clients in the event of loss of their properties under the scope of respective
Insurance Policy. It is SKICL’s vision to settle the Insurance Claim within the shortest possible time with
entire satisfaction of the clients. The company commenced business at the later part of 2013 and by now
has settled about 341 claims of various types while 86 claims are in the process of settlement.
SKICL’s Commitment:
a) Prudent Underwriting.
b) 100% Re-Insurance protection.
c) Prompt Settlement of Claim.
d) Friendly relations with valued clients.
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Financial Highlights of SKICL in the last three audited years is provided below:
Detail in BDT 31 Dec 2020 31 Dec 2019 31 Dec 2018

Authorised Capital 1,000,000,000 1,000,000,000 1,000,000,000
Paid-up Capital 240,000,000 240,000,000 240,000,000
Total Assets 978,292,139 747,002,325 520,578,109
Net Worth 506,203,422 434,414,777 349,234,833
Revenue 580,522,233 576,092,516 363,870,416
Gross Profit 66,824,517 75,490,878 10,871,916
Net Profit after Tax 94,275,660 98,284,035 37,846,671
Cash Flow from Operating Activities 221,715,530 232,450,624 53,470,326
Cash and Cash Equivalents 793,496,960 631,300,820 418,233,547
List of Issuances in which SKICL is acting as Trustee:
For the Due Diligence Certificate of Trustee, please see Annexure 4.
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20. MODUS OPERANDI OF THE ISSUE
1. Application Procedure:
The Bonds shall be distributed 100% through private placement. Each Investor (Bondholder)
shall enter into a separate Subscription Agreement with respect to their investment with the Issuer
and shall be bound by the terms and conditions contained in the Subscription Agreement and the
Trust Deed containing in details the rights and obligations of the Investor(s).
2. Allotment:
On the Closing Date, to be determined, the Issuer shall allot and issue the Bonds to the
Investor(s). The Bonds will be allotted according to the Bangladesh Securities and Exchange
Commission (Debt Securities) Rules, 2021.
3. Refund:
Not applicable at the time of Issuance. However, subject to receiving proper consent from the
regulatory authorities Refund in relation to the subscription may be possible upon mutual
agreement between the Issuer and each Bondholder.
4. Transfer:
Bonds are transferable subject to the Terms and Conditions set out in the Trust Deed.
5. Repayment and Redemption features of the Bond:
Coupon on the Bonds shall be paid on semi-annual basis on the Interest Payment Dates. The
Interest Payment Dates shall be determined depending upon the Issue Date. Unless previously
redeemed or purchased or cancelled, the principal of the Bonds will amortize, and paid annually
on a pro rata basis to the Bondholders in instalments of 20% per year commencing at the third
anniversary of the Bonds from the Issue Date. The final maturity of the Bonds will at the end of
seventh year from the Issue Date of the Bonds.
6. Details of conversion or exchange option:
Not Applicable
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21. DECLARATION ABOUT THE RESPONSIBILITY OF THE DIRECTORS
71
22. DETAILS OF FEES STRUCTURE AND EXPENSES
The issuance of this bond will incur following fees and expenses:
Fee Type Party to be Paid Fee Structure/Amount

 Application Fee: BDT 10,000
Bangladesh Securities and
Regulatory Fees  Consent Fees: 0.10% on the Face
Exchange Commission
Value
0.50% of the Face Value Amount of
Arrangement Fee Standard Chartered Bank
bond
BDT 300,000 for the 1st year and BDT
Sena Kalyan Insurance
Trustee Fee 250,000 per annum for subsequent
Company Limited
years till final redemption of bond
Credit Rating Information and BDT 150,000 per annum till final
Credit Rating Fee
Services Limited redemption of bond
Legal Expenses Lex Juris BDT 150,000
Interim Audit fee M.J Abedin & Co BDT 1,000,000
As required related to the issuance of
the Bond.e.g. Application fee, Bond
Miscellaneous Other Expenses Registration fee, Trustee Registration
fee, ATB Expenditure, Listing
Expenditure etc.
All fees are quoted net of applicable VAT.
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ANNEXURE 1: ISSUE APPLICATION AS PER SCHEDULE A
73
ANNEXURE 2: AUDITED FINANCIAL STATEMENTS OF IFIC BANK
LIMITED AS OF 30 SEPTEMBER 2021
74
Notes to the Financial Statements office of IFICSL located at IFIC Tower, 61, Purana Paltan, Dhaka –
As at and for the period ended 30 September 2021 1000.
1. Reporting Entity 1.3.2. IFIC Money Transfer (UK) Limited

1.1. IFIC Bank Limited IFIC Money Transfer (UK) Limited is a fully owned subsidiary of
International Finance Investment and Commerce Bank Limited IFIC Bank incorporated as a private limited company with
(hereinafter referred to as "the Bank" / "IFIC Bank"), started its Companies House of England and Wales under registration no.
journey in 1976 at the instance of the Government as a joint 07379137 on 16 September 2010 and obtained its Money
venture between the Government of Bangladesh and sponsors in Laundering registration on 17 January 2011 issued by HM
the private sector with the objective of working as a finance Customs and Excise. The company got registration from Financial
company within the country and setting up joint venture Conduct Authority (FCA) [previously it was Financial Services
banks/financial institutions aboard. In 1983 when the Government Authority (FSA)] on 16 June 2011 under Payment Services
allowed to open up banking in the private sector, the finance Regulations 2009. The company commenced its operation on 31
company was converted into a full fledge commercial bank. The August 2011. The registered office of the company is located at
Government of the People's Republic of Bangladesh, now, holds Ferrari House, 2nd Floor, 102 College Road, Harrow, Middlesex,
32.75% of the share capital of the Bank. Directors and Sponsors United Kingdom HAI IES, London, UK. The principal activities of
having vast experience in the field of trade and commerce own the company is remitting/transfer money and related services on
4.11% of the share capital and the rest is held by Institutions both behalf of its customers.
local & foreign and General Shareholders.
1.3.3. IFIC Investment Limited [IFICIL]
Its shares are listed with Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited. The Bank has 157 branches, IFIC Investment Limited, a fully owned subsidiary company of IFIC
589 Uposhakhas and 39 ATM booths with 53 ATMs as at 30 Bank Limited was incorporated as a public limited company. The
September 2021. main objectives of this subsidiary are merchant banking operation
which is yet to start. The registered office of IFICSL located at IFIC
The principal activities of the Bank are to provide all types of Tower, 61, Purana Paltan, Dhaka – 1000.
commercial banking services, within the stipulations laid down by
the Banking Companies Act 1991 as amended and directives as
received from Bangladesh Bank and other regulatory authorities 1.4. Associates of the Bank
from time to time, through its Branches, Uposhakhas and
Alternative Delivery Channels like ATM Booths and Internet 1.4.1. Nepal Bangladesh Bank Limited [NBBL], Nepal
Banking, Digital Channel etc.
1.2. Off-shore Banking Unit (OBU) Nepal Bangladesh Bank Limited, a joint venture commercial bank
between IFIC Bank Limited and Nepali Nationals, started operation
Off-shore Banking Unit (OBU) is a separate business unit of IFIC with effect from 06 June 1994 in Nepal. The Bank has so far
Bank Limited. The Bank obtained permission for OBU operations opened 99 (Ninety Nine) branches at different important locations
from Bangladesh Bank vide its letter no. BRPD (P-3) 744 in Nepal. IFIC Bank presently holds 40.91% shares in NBBL and
(104)/2009-4233 dated 17 November 2009 and commenced its has a Management & Technical Service Agreement to provide
operation from 10 May 2010. The operation of OBU is governed technical know-how and professional knowledge to strengthen the
under prudential regulations of Bangladesh Bank and solo basis smooth function of NBBL. NBBL is listed with Nepal Stock
Financial Statements of the Bank have been prepared treating Exchange Limited.
OBU as a business line in equivalent Bangladeshi Taka as per
BRPD circular no 2 dated 25 February 2019, a separate Financial 1.4.2. Oman Exchange LLC, Oman
Statements has been prepared for OBU which are shown in
Annexure-L.
Oman Exchange LLC, an exchange company incorporated under
1.3. Subsidiaries of the Bank the laws of the Sultanate of Oman in 1985 as a joint venture
1.3.1. IFIC Securities Limited [IFICSL] between IFIC Bank and Omani Nationals. The principal activities of
the company is, to remit/transfer money/fund to the different parts
IFIC Securities Limited, a fully owned subsidiary company of IFIC of the world including Bangladesh and related services. IFIC holds
Bank Limited was incorporated as a public limited company and 49% shares of Oman Exchange LLC and the rest 51% shares is
acquired membership of Dhaka Stock Exchange Limited for held by the Omani sponsors. The registered office is located
brokerage transaction. The main objectives of this subsidiary are Building no. 4699, Way no. 4567, Hamriya, PO Box 114, Post
buying, selling and settling of securities on behalf of investors and code 994, Hey Al Mina, Hamriya, Muscat, Sultanate of Oman.
its own portfolio as well as other related services. The registered
18
1.5. MCB Bank Ltd, Pakistan (NAV) of last audited balance sheet, respectively. In addition to
that Department of Of-site Supervision (DOS) of Bangladesh Bank
MCB Bank Limited is one of the largest Banks in Pakistan listed on vide its circular letter no. 03 dated 12 March 2015 directed that
Pakistan Stock Exchange. IFIC Bank had two branches in investment in mutual fund (closed end) will be revalued at lower of
Pakistan, one at Karachi (in 1987) and the other at Lahore (in cost and (higher of marker value and 85% of NAV). Provision
1993). IFIC Pakistan operation was merged with NDLC on 02 should be made for any loss arising from diminution in value of
October 2003 and renamed it NDLC-IFIC Bank Limited. It was investment on portfolio basis; otherwise investments are
subsequently renamed as NIB Bank Limited with effect from 28 recognized at cost.
November 2005. In 2017 NIB Bank Limited merged with MCB
Bank Limited and IFIC’s holding diluted significantly due to this ii. Revaluation gains/losses on Government securities
merger. Now IFIC holds very minimal share in MCB Bank Limited. IAS/IFRS: As per requirement of IFRS 9: Financial Instruments,
where securities will fall under the category of ‘fair value through
2. Basis of Preparation and Significant Accounting profit or loss account’, any change in the fair value of assets is
Policies recognized through the profit and loss account. Securities
designated as amortized cost are measured at effective interest
2.1. Basis of preparation rate method and interest income is recognized through the profit
2.1.1. Statement of compliance and loss account.
The Financial Reporting Act 2015 (FRA) was enacted in 2015. Bangladesh Bank: Held for Trading (HFT) securities are revalued
Under the FRA, the Financial Reporting Council (FRC) is formed in on the basis of mark to market and at year end any gains on
2017 and has since then adopted the International Accounting revaluation of securities which have not matured as at the balance
Standards (IAS) International Financial Reporting Standards sheet date to be recognized as other reserves in equity. Any
(IFRS) as the applicable Financial Reporting Standards with effect losses on revaluation of securities which have not matured as at
from 2 November 2020 the balance sheet date are charged in the profit and loss account.
Accordingly, the Financial Statements of the Bank have been Interest on HFT securities including amortization of discount are
prepared in accordance with International Financial Reporting recognized in the profit and loss account. Held to Maturity (HTM)
Standards (IFRS), International Accounting Standards (IAS) and securities which have not matured as at the balance sheet date
the requirements of the Banking Companies Act 1991 (as are amortized at year end and gains or losses on amortization are
amended up to date), the rules and regulations issued by recognized in other reserve as part of equity.
Bangladesh Bank, the Companies Act 1994, the Securities and
Exchange Rules 1987 and other applicable laws and regulations. iii. Repo and reverse repo transactions
IAS/IFRS: As per IFRS 9: Financial Instruments, when an entity
In case any requirement of the Banking Companies Act 1991 and sells a financial asset and simultaneously enters into an
provisions and circulars issued by Bangladesh Bank differ with agreement to repurchase the asset (or a similar asset) at a fixed
those of IFRSs and IASs, the requirement of the Banking price on a future date (repo), the arrangement is treated as a loan
Companies Act 1991 and provisions and circulars issued by and the underlying asset continues to be recognized at amortized
Bangladesh Bank shall prevail. cost in the entity’s financial statements. The difference between
selling price and repurchase price will be treated as interest
Material departures from the requirements of IFRS in preparing expense. The same rule applies to the opposite side of the
these financial statements are as follows: transaction (reverse repo).
i. Investment in shares and securities Bangladesh Bank: As per DOS circular letter no. 6 dated 15 July
IAS/IFRS: As per requirements of IFRS 9: Financial Instruments, 2010 and subsequent clarification in DOS circular no. 2 dated 23
classification and measurement of investment in shares and January 2013, when a bank sells a financial asset and
securities will depend on the entity’s business model and its simultaneously enters into an agreement to repurchase the asset
contractual cash flow characteristics. Based on these factors it (or a similar asset) at a fixed price on a future date (repo or stock
would generally fall either under “at fair value through profit and lending), the arrangement is accounted for as a normal sales
loss account” or under “at fair value through other comprehensive transaction and the financial asset is derecognized in the seller’s
income” where any change in the fair value (as measured in book and recognized in the buyer’s book. In addition to that as per
accordance with IFRS 13: Fair Value Measurement) at the period- DMD circular letter no. 7 dated 29 July 2012, non-primary dealer
end is taken to profit and loss account or other comprehensive banks are eligible to participate in the Assured Liquidity Support
income, respectively. (ALS), whereby such banks may carry out collateralized repo
arrangements with Bangladesh Bank. Here the selling bank
Bangladesh Bank: As per Banking Regulation & Policy accounts for the arrangement as a loan, thereby continuing to
Department (BRPD) circular no. 14 dated 25 June 2003 recognize the asset.
investments in quoted shares and unquoted shares are revalued
on the basis of period end market price and Net Assets Value
19
iv. Provision on loans and advances/investments statements or the elements of OCI are to be included in a single
IAS/IFRS: As per IFRS 9: Financial Instruments, an entity shall Other Comprehensive Income statement.
recognize an impairment allowance on loans and advances based
on expected credit losses. At each reporting date, an entity shall Bangladesh Bank: Bangladesh Bank has issued templates for
measure the impairment allowance for loans and advances at an financial statements which will strictly be followed by all banks. The
amount equal to the lifetime expected credit losses if the credit risk template of financial statements issued by Bangladesh Bank
on these loans and advances has increased significantly since neither include OCI nor are the elements of OCI allowed to be
initial recognition whether assessed on an individual or collective included in a single OCI Statement. As such the Bank does not
basis considering all reasonable information, including that which prepare the OCI statement. However, elements of OCI, if any, are
is forward-looking. For those loans and advances for which the shown in the statements of changes in equity.
credit risk has not increased significantly since initial recognition, at vii. Financial instruments – presentation and disclosure
each reporting date, an entity shall measure the impairment In several cases Bangladesh Bank guidelines categories,
allowance at an amount equal to 12 month expected credit losses recognize, measure and presentation of financial instruments
that may result from default events on such loans and advances different from as prescribed by IFRS 9. As such full disclosure and
that are possible within 12 months after reporting date. presentation requirements cannot be made in the financial
Bangladesh Bank: As per BRPD circular no. 14 dated 23 statements as per IFRS 7: Financial Instruments Disclosures and
September 2012, BRPD circular no. 5 dated 29 May 2013, BRPD IAS 32: Financial Instruments: Presentation.
circular no. 16 dated 18 November 2014, BRPD circular no. 15
dated 27 September 2017, BRPD circular no. 1 dated 20 February viii. Financial guarantees
2018 and BRPD circular No. 3 dated 21 April 2019 a general IAS/IFRS: As per IFRS 9: Financial Instruments, financial
provision at 0.25% to 5% under different categories of guarantees are contracts that requires an entity to make specified
unclassified/standard loans has to be maintained regardless of payments to reimburse the holder for a loss it incurs because a
objective evidence of impairment. Also provision for sub-standard specified debtor fails to make payment when due in accordance
loans, doubtful loans and bad & loss loans has to be provided at with the term of debt instruments. Financial guarantee liabilities are
20%, 50% and 100% respectively depending on the duration of recognized initially at their fair value and amortized over the life of
past due of loans and advances. Again general provision at 1% is the financial guarantee. The financial guarantee liability is
required to be provided for off-balance sheet exposures as per subsequently carried at the higher of this amortized amount and
BRPD circular no. 10 dated 18 September 2007, BRPD circular loss allowance determined expected credit loss under IFRS 9.
no. 7 dated 21 June 2018 and BRPD circular no. 13 dated 18 Financial guarantees are prescribed to be included in other
October 2018. Provision for Short-Term Agricultural and Micro- liabilities.
Credits has to be provided at the rate of 5% for 'sub-standard' and
'doubtful' loans and at the rate of 100% provision for the 'bad/Loss' Bangladesh Bank: As per BRPD circular no. 14 dated 25 June
loans. As per BRPD circular no. 4 dated 29 January 2015, 1% 2003, financial guarantees such as Letter of Credit, Letter of
additional provision has to be maintained for large restructured Guarantee should be treated as Off-balance items. No liability is
loan and also 1% additional provision has to be maintained against recognized for the guarantee except the cash margin.
the facilities for which payment was deferred during the year 2020
due to COVID-19 pandemic under purview of BRPD Circular No. ix. Cash and cash equivalent
56 dated 10 December 2020. Such provision policies are not IAS/IFRS: Cash and cash equivalents items should be reported as
specifically in line with those prescribed by IFRS 9. cash item as per IAS 7: Statement of Cash Flows.
v. Recognition of interest in suspense
IAS/IFRS: Loans and advances to customers are generally Bangladesh Bank: Some cash and cash equivalent items such as
classified at amortized cost as per IFRS 9 and interest income is ‘money at call and on short notice’, treasury bills, Bangladesh
recognized by using the effective interest rate method to the gross Bank bills and prize bond are not shown as cash and cash
carrying amount over the term of the loan. Once a loan equivalents. Money at call and on short notice presented on the
subsequently become credit-impaired, the entity shall apply the face of the balance sheet. Treasury bills, Bangladesh Bank bills
effective interest rate to the amortized cost of these loans and and prize bonds are shown under investments in the balance
advances. sheet. However, in the Cash Flow Statement, money at call and on
short notice and prize bonds are shown as cash and cash
Bangladesh Bank: As per BRPD circular no. 14 dated 23 equivalents beside cash in hand, balance with Bangladesh Bank
September 2012, once a loan is classified, interest on such loans and other banks.
are not allowed to be recognized as income, rather the
corresponding amount transferred/credited to an interest in x. Non-banking asset
suspense account and shown as liability in the balance sheet. IAS/IFRS: No indication of Non-banking asset is found in any
IAS/IFRS.
vi. Other comprehensive income
IAS/IFRS: As per IAS 1: Presentation of Financial Statements, Bangladesh Bank: As per BRPD circular no. 14 dated 25 June
Other Comprehensive Income (OCI) is a component of financial 2003 and BRPD circular no. 22 dated 20 September 2021, there is
20
a separate balance sheet item named Non-banking assets shown xvii. Presentation of Financial Statement
in the standard template of the balance sheet. IAS/IFRS: As per IAS 1 financial statements shall comprise
statement of financial position, statement of profit or loss and other
xi. Cash flow statement comprehensive income, statement of changes in equity, cash flow
IAS/IFRS: As per IAS 7: Statements of Cash Flows, the cash flow statement, adequate notes comprising summary of accounting
statement can be prepared using either the direct method or the policies and other explanatory information. As per para 60 of IAS
indirect method. The presentation is selected to present these 1, the entity shall also present current and non-current assets and
cash flows in a manner that is most appropriate for the business or liabilities as separate classifications in its statement of financial
industry. The method selected is applied consistently. position.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June Bangladesh Bank: Bangladesh Bank vide it BRPD circular no. 14
2003, Cash Flow Statement is the mixture of direct and indirect dated 25 June 2003 directed all banks to prepared their financial
methods. statements in the prescribed template comprising balance sheet,
xii. Balance with Bangladesh Bank: (Cash Reserve profit and loss account, cash flow statement, statement of changes
Requirement - CRR) in equity, liquidity statement and certain disclosures therein are
IAS/IFRS: As per IAS 7: Statements of Cash Flows, Balance with guided by the First Schedule (section 38) of the Banking
Bangladesh Bank should be treated as other asset as it is not Companies Act 1991. (Amendment up to date) and BRPD circular
available for use in day to day operations. no. 14 dated 25 June 2003. In that prescribed template there is no
Bangladesh Bank: Balance with Bangladesh Bank including CRR scope to present assets and liabilities under current and
is treated as cash and cash equivalents. noncurrent classifications.
xiii. Presentation of intangible asset [Also refer to (note 2.2.11 Compliance of International Financial
IAS/IFRS: Intangible asset must be identified, recognized and Reporting Standards (IFRSs)]
disclosed in the financial statements as per IAS 38: Intangible
Assets. 2.1.2. Going concern
Bangladesh Bank: There is no regulation for disclosure of The accompanying financial statements have been prepared on a
intangible assets in BRPD circular no. 14 dated 25 June 2003. going concern assumption that the Bank is a going concern and
will continue in operation for the foreseeable future. Hence, it is
xiv. Off-balance sheet items assumed that the Bank has neither the intension nor the need to
IAS/IFRS: There is no concept of off-balance sheet items in any liquidate or curtail materially the scale of its operation. The
IAS/IFRS; hence there is no requirement for disclosure of off- accompanying financial statements do not include any adjustments
balance sheet items on the face of the balance sheet. should the Bank be unable to continue as a going concern.
Bangladesh Bank: As per BRPD circular no. 14, off-balance The management of the Bank has calculated all the ratios related
sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be to the maintenance of regulatory requirements of capital & liquidity
disclosed separately on the face of the balance sheet. such as CRAR, LCR, NSFR, CRR & SLR and assessed adequacy
of bank's liquidity as per structured liquidity profile to determine
xv. Disclosure of appropriation of profit bank's shock absorbent capacity in different distress scenario. All
IAS/IFRS: There is no requirement to show appropriation of profit the ratios and results thus calculated reveal that Bank is running
on the face of Profit and Loss Account. well above the level of different parameters set by the respective
guidelines of Bangladesh Bank. The rating outlook of the Bank as
Bangladesh Bank: As per BRPD circular no. 14, dated 25 June assigned by the rating agency Emerging Credit Rating Limited
2003, an appropriation of profit should be disclosed on the face of (ECRL) is ‘stable’. The management do not see any issue with
profit and Loss Account. respect to going concern due to recent pandemic COVID-19.
Besides, the management is not aware of any material uncertainty
xvi. Loans and advances net off provision that may cast significant doubt upon the Bank’s ability to continue
IAS/IFRS: As per IFRS 9, loans and advances shall be presented as a going concern.
at amortized cost net off any write down for impairment (expected
credit losses that result from all possible default events over the 2.1.3. Functional and presentation currency
life of the financial instruments).
The financial statements are presented in Bangladeshi Taka
Bangladesh Bank: As per BRPD circular no. 14, provision for (BDT/Tk.) which is the Group's and the Bank's functional currency.
loans, advances and investments are presented separately as Functional currency of Off-shore Banking Unit and one of
liability and cannot be netted off against the outstanding balance of subsidiaries namely IFIC Money Transfer (UK) Limited is US Dollar
loans, advances and investment. (USD) and Great Britain Pound (GBP) respectively. Functional
currency for two associates – Oman Exchange LLC and Nepal
21
Bangladesh Bank Limited is Omani Rial and Nepalese Rupee 2.1.8. Reporting period
respectively. Financial information presented in BDT has been
rounded off to nearest integer, except otherwise indicated. The These consolidated financial statements cover the period from 1
financial statement and information of the subsidiaries and joint January to 30 September 2021. The reporting period of the
venture/associates whose functional currency is different than that subsidiaries namely IFIC Securities Limited and IFIC Money
of IFIC Bank Limited has been translated in the presentation Transfer (UK) Limited and one of the associates Oman Exchange
currency i.e. BDT as per IAS 21: The Effects of Changes in LLC is in line with that of the parent i.e. IFIC Bank Limited. The
Foreign Exchange Rates, where applicable. reporting period of the subsidiary IFIC Investments Limited covers
the period from 30 November 2020 (which is the Company's date
2.1.4. Materiality and aggregation of incorporation) to 30 September 2021. The reporting period of
Each material item considered as significant and has been Nepal Bangladesh Bank Limited is as per Nepalese Calendar Year
presented separately in the financial statements. No assets has and hence the financial statements for the period ended 17
been set off against any liability other than IFIC General Account October 2021 have been considered for consolidation purposes.
and unless the Bank has a legal right to set off such amount and The operating results of Nepal Bangladesh Bank Limited have
intends to settle on net basis. Income and expenses are presented been adjusted proportionately in line with the reporting period of
on a net basis only when permitted by the relevant financial IFIC Bank Limited as consolidation adjustments.
reporting standards or as directed by Bangladesh Bank.
2.1.9. Date of authorization
2.1.5. Comparative information
Accounting policies have been consistently applied by the bank The Board of Directors has authorized these financial statements
and are consistent with those used in the previous period for public issue on 28 October 2021.
Comparative amounts in the financial statements have been
reclassified and rearranged to conform to the current period’s 2.1.10. Use of estimates and judgments
presentation. The Bank did not restated its comparative figures In the preparation of the financial statements of the Bank in
which affect the related implications of IAS 1: Presentation of conformity with IFRSs requires management to make judgments,
Financial Statements. estimates and assumptions that affect the application of
accounting policies and the measurement of assets, liabilities,
2.1.6. Reconciliation of inter-bank and inter-branch account income and expenses. Accordingly, actual results may differ from
these estimates.
Books of Accounts with regard to inter-bank (in Bangladesh and
outside Bangladesh) are reconciled on regular basis and there are Estimates and underlying assumptions are reviewed on an
no material differences which may affect the financial statements ongoing basis. Revisions to accounting estimates are recognized
significantly. in the period in which the estimate is revised and in any future
periods affected.
The Bank doesn’t have any un-reconciled entries related to inter-
branch transactions as on the reporting date. Key estimates are as follows:
2.1.7. Foreign currency transactions  Provision for loans, advances and investments ;
 Revaluation of land & buildings;
Foreign currency transactions are translated into the Bank's  Deferred tax assets/liabilities;
functional currency at the exchange rates prevailing on the  Useful life of depreciable assets;
respective date of such transactions as per IAS 21: The Effect of  Measurement of defined benefit obligation (Provision for
Changes in Foreign Exchange Rates. Monetary assets and gratuity);
liabilities in foreign currencies are converted into Taka at spot  Provision / accruals for expenses;
exchange rate at the reporting date. Foreign exchange differences  Provision for current taxation;
are generally recognized in the profit and loss account.  Lease Liabilities and Right of Use Assets;
Foreign operations Changes in accounting estimates

The results of financial statements of the Bank whose functional Changes are reflected in the assumptions when they occur in
currency is not Bangladesh Taka are translated into Bangladesh accordance with IAS 8: Accounting Policies, Changes in
taka as follows: Accounting Estimates and Errors. During the period, the bank has
a. Assets and liabilities for each statement of balance sheet have not adopted any change of accounting estimates.
been translated at the closing rate on the date of balance
sheet.
b. Income and expenses for the profit and Loss account have
been translated at monthly average rate.
22
2.1.11. Basis of consolidation Transactions eliminated on consolidation
All intra-group transactions, balances and any unrealized income
The consolidated financial statements include the financial and expenses arising from intra-group transactions are eliminated
statements of IFIC Bank Limited and its subsidiaries, IFIC in preparing consolidated financial statements.
Securities Limited operating in Bangladesh and IFIC Money
Transfer (UK) Limited operating in United Kingdom as those of a 2.1.12. Basis for preparation of liquidity statement
single economic entity. The separate financial statements are
derived by combining the financial statements of main operation of The liquidity statement has been prepared in accordance with the
IFIC Bank Limited as Domestic Banking Unit and the financial remaining maturity grouping of the value of the assets and
statements of Off-shore Banking Unit (OBU) in equivalent BDT liabilities as on the reporting date under the guidelines of
denomination as per BRPD circular no 2 dated 25 February 2019. Bangladesh Bank BRPD circular No. 14 dated 25 June 2003. The
bank used following basis for preparation of liquidity statement:
The consolidated and separate financial statements have been
prepared in accordance with IAS 27: Separate Financial Particulars Basis
Statements and IFRS 10: Consolidated Financial Statements. The Balance with other Banks and Maturity term
consolidated financial statements are prepared to a common financial institutions
period ended 30 September 2021. The reporting period of Nepal Money at call and on short Maturity term
Bangladesh Bank Limited is different from that of the IFIC, notice
necessary adjustments have been made to the financial results at Investments Respective residual maturity
the time of consolidation. Both consolidated financial statements Loans and advances Repayment schedule
and separate financial statements of the Bank comprises Balance Fixed assets Useful lives
Sheet, Profit & Loss Statement, Cash Flow Statement, Statement Other assets Realization / amortization
of Changes in Equity and relevant notes and disclosures. Sub-ordinated debt Maturity / repayment terms
Borrowing from other Banks, Maturity / repayment terms
Subsidiaries financial institutions
Subsidiaries are all entities over which the bank has the power to
Deposits and other accounts Maturity term and past trend
govern the financial and operating policies generally
of withdrawal
accompanying a shareholding of more than one half of the voting
Provisions and other liabilities Settlement/Payment/adjustm
rights. A parent of a subsidiary should present consolidated
ents schedule
financial statements according to IAS 27: Separate financial
2.1.13. Basis of provision, contingent liabilities, contingent
statements and IFRS 10: Consolidated Financial Statements. The
assets
financial statements of subsidiary are included in the consolidated
financial statements from the date that control effectively
The Bank recognizes provisions only when it has a present
commences until the date that the control effectively ceases.
obligation as a result of a past event and it is probable that an
outflow of resources embodying economic benefits will be required
The financial statements of such subsidiary companies are
to settle the obligation and when a reliable estimate of the amount
incorporated on a line by line basis and investment held by the
of the obligation can be made.
bank is eliminated against the corresponding share capital of
subsidiaries in the consolidated financial statements.
No provision is recognized for -
a. Any possible obligation that arises from past events and the
Associates
existence of which will be confirmed only by the occurrence or
An associate is an enterprise in which the investor has significant
non-occurrence of one or more uncertain future events not
influence and which is neither subsidiary nor a joint venture of the
wholly within the control of the Bank; or
investor (IAS 28: Investments in Associates). Significant influence
is the power to participate in the financial and operating policy
b. Any present obligation that arises from past events but is not
decisions of the investee but there is no control over those
recognized because-
policies. Investment in associate is accounted for in the financial
- It is not probable that an outflow of resources embodying
statements under the "equity method" as per the direction of
economic benefits will be required to settle the obligation;
Bangladesh Bank. Under the equity method, the investment is
or
initially recorded at cost and the carrying amount is increased or
- A reliable estimate of the amount of obligation cannot be
decreased to recognize the investor's share of the profits and
made.
losses of the investee after the date of acquisition. The investor's
share of the investee's profit or loss is recognized in the investor's
Such obligations are recorded as contingent liabilities. These are
profit and loss account. Distributions received from an investee
assessed continually and only that part of the obligation for which
reduce the carrying amount of the investment.
an outflow of resources embodying economic benefits is probable,
is provided for except in the extremely rare circumstances where
no reliable estimate can be made. Contingent assets are not
23
recognized in the financial statement since this may result in the Bangladesh Bank requirement. Realized gain or losses are
recognition of income that may never be realized." recognized in the profit and loss account.
iv. Investment in unquoted shares/securities

2.2. Significant accounting policies Investment in unquoted shares/securities are initially recognized at
The accounting policies set out below have been applied cost and revalued based on book value of last audited balance
consistently to all periods presented in these financial statements, sheet. Provision arising from diminution in value of investment
and have been applied consistently by group entities except recognized in profit and loss accounts as per Bangladesh Bank
otherwise instructed by Bangladesh Bank as the prime regulator or guidelines.
local laws where the entities are operated.
v. Investment in subsidiary
2.2.1. Assets and basis of their valuation Investment in subsidiary is accounted for under the cost method of
accounting and presented in the Bank’s consolidated financial
2.2.1.1. Cash and cash equivalents statements as that of a single economic entity in accordance with
Cash and cash equivalents include notes and coins in the IAS 27: Separate Financial Statements and IFRS 10:
hand, cash at bank, unrestricted balances held with Consolidated Financial Statements.
Bangladesh Bank and its agent bank, balance with other
banks and financial institutions, money at call and on vi. Investment in associates
short notice and such other highly liquid financial assets Investment in associates are accounted for using the equity
which are subject to insignificant risk of changes in their method (equity accounted investees) in the consolidated financial
value and are used by the Bank management for its short statements as per IAS 28: Investment in Associates. Under this
term commitments. method, the investment is initially recorded at cost and the
increase and decreases on the carrying amount is recognized in
2.2.1.2. Investment investor’s share of profit & losses of the investee after the date of
All investments (except government treasury bill and bond) have acquisition. The consolidated financial statements include the
been initially recognized at cost, including acquisition charges IFIC's share of the profit and loss of equity accounted investees,
associated with the investment. Premiums have been amortized after adjustments to align the accounting policies with those of the
and discount accredited by using the effective or historical yield IFIC Bank Limited, from the date that significant influence
method. Government Treasury Bills and Bonds (categorized as commences until the date that significant influence ceases.
HFT and/or HTM) are accounted for as per Bangladesh Bank DOS
circular letter no. 5 dated 26 May 2008 and DOS circular no. 5 2.2.1.3. Loans and advances
dated 28 January 2009. Details of the valuation methods of
investment are given below: i. Loans and advances are non-derivatives financial assets with
fixed or determinable payments that are not quoted in an
i. Govt. securities – Held to Maturity (HTM) active market and that the Bank does not sell in the normal
Investments which are intended to be held to maturity are course of business. It has been stated at gross value as pre
classified as “Held to Maturity”. These are measured at amortized requirements of the Banking Companies Act, 1991.
cost at each period end by taking into account any discount or
premium in acquisition. Amortized amount of such premium are ii. Provision for loans and advances are made in line with the
booked into Profit and Loss Account or discount is booked to direction contained in the BRPD circular no. 14 dated 23
reserve until maturity/disposal. September 2012, BRPD circular no. 5 dated 29 May 2013,
BRPD circular no. 16 dated 18 November 2014, BRPD
ii. Govt. securities – Held for Trading (HFT) circular no. 4 dated 29 January 2015, BRPD circular no. 15
Investment held in this category are acquired principally for the dated 27 September 2017, BRPD circular no. 1 dated 20
purpose of selling and purchasing in short trading. After initial February 2018, BRPD circular no. 7 dated 21 June 2018,
recognition, investments are revalued weekly on mark to market BRPD circular no. 13 dated 18 October 2018 and BRPD
basis. Decrease in the book value is recognized in the profit and circular No. 3 dated 21 April 2019 issued by Bangladesh
loss account and any increase is transferred to revaluation reserve Bank. As per BRPD circular no. 4 dated 29 January 2015, 1%
account. additional provision has to be maintained for restructured
large loan and also as per BRPD circular no. 56 dated 10
iii. Investment in quoted shares/securities December 2020, facilities for which payment was deferred
These shares/securities are bought and held primarily for the during COVID-19. The rates of provision by classification of
purpose of selling in future or for dividend income. Investment in loans and advances are disclosed in note number 15.1.1 and
quoted shares/securities are revalued at the end of the reporting 15.2.1 of the financial statements.
period and necessary provisions are maintained for diminution in
value of investments in quoted shares/securities in line with iii. Interest on unclassified loans and advances (except those of
rescheduled and stay order accounts) is recognized as
24
income on accrual basis, interest on classified loans and valuer is carried out and any changes in fair value over cost is
advances (including rescheduled and stay order accounts) is adjusted in revaluation reserve account in equity.
credited to interest suspense account. However actual
recovery of interest on rescheduled, stay order accounts and iii. Depreciation on fixed assets except Land is charged from
classified loan credited to income account as per instruction when the assets become ready to be used and no
of BRPD circular no. 14 dated 23 September 2012, BRPD depreciation is charged in the month of asset is disposed.
circular no. 19 dated 27 December, BRPD circular no. 16
dated 18 November 2014 and BRPD Circular No. 56 dated 10 iv. Depreciation is comprised of both from fixed assets and
December 2020. leased assets as per IFRS 16: Leases (note 2.2.1.7). As per
the new standard, previously recognized rental expenses
iv. The Bank are providing concessional interest rare to its' good would be replaced with depreciation expenses.
borrowers.
v. Assets that take some time to get it ready for use such as
v. Loans and advances are written off from the books of construction or improvement of building or implementation of
accounts in line with the BRPD circular no. 01 dated 06 new system etc. are initially kept as capital work in progress
February 2019 issued by Bangladesh Bank. These write off and once ready/available for use then it is transferred to
will not undermine/affect the claim amount against the respective category of fixed assets and calculation of
borrower. depreciation starts accordingly.
vi. Provision on off balance sheet exposures Bank recognized 2.2.1.5. Intangible assets
1% General Provision on the off balance sheet exposures in Intangible assets are identifiable non-monetary assets without
line with the directives of Bangladesh circular BRPD circular physical substance. It comprises the value of computer application
no. 10 dated 18 September 2007 and BRPD circular no. 14 software licensed for the Bank, other than software applied to the
dated 23 September 2012 considering the exemption as operating systems of computers. An intangible asset is recognized
provided through BRPD circular no. 10 dated 18 September if it is probable that future economic benefits that are attributable to
2007, BRPD circular no. 1 dated 03 January 2018, BRPD the asset will flow to the Bank over a period of time and the cost of
circular no. 7 dated 21 June 2018 and BRPD circular no.13 the asset can be measured reliably as per IAS 38: Intangible
dated 18 October 2018. Assets. Intangible assets acquired separately are recorded on
initial recognition at costs and are carried at cost less accumulated
2.2.1.4. Fixed assets and depreciation amortization and accumulated impairment losses, if any.
Subsequent expenditure on intangible asset
Acquisition through outright purchase and Lease Subsequent expenditure on intangible asset is capitalized only
i. Fixed assets are stated at cost/revalued amount less when it increases the future economic benefits embodied in the
accumulated depreciation for those acquired through outright specific assets to which it relates. All other expenditures are
purchase except Land. Land is initially measured at cost and charged as expense to the profit and loss account as and when
then recognized at revalued amount. The bank has charged they are incurred.
depreciation using straight line method considering the
following useful life: Amortization of intangible asset
Particulars Useful Life (Years) Intangible assets are amortized on straight line method to the profit
Building 40 and loss account from the year when the asset is available for use.
Wooden Furniture 10 Intangible asset i.e. acquisition cost of the computer application
Steel Furniture 15 software is amortized over its useful life which is usually 10 years
Office Equipment 5 or among the period of license of the concerned software.
Computer 5
Electrical & Gas Equipment 8 2.2.1.6. Impairment of assets
Leasehold improvement 10
Vehicles 5 An asset is impaired when its carrying amount exceeds its
recoverable amount as per IAS 36: Impairment of Assets. The
Soft furnishing 3
Bank assesses at the end of each reporting period whether there
is any indication that an asset may be impaired. The impairment
ii. Land/Building is initially recognized at cost and subsequently
test is also made whenever events or changes in circumstances
carried at revalued amount following revaluation model as per
indicate that the carrying value of the asset may not be recovered.
IAS 16: Property, plant and equipment. The Bank regularly
If any such indication exists, the Bank makes an estimate of the
reviews if the fair value of Land/Building is materially different
recoverable amount of such assets. Upon estimation, if the
from its carrying amount or book value and if it is observed
recoverable amount is less than its carrying amount, the carrying
that there is material differences between carrying amount
amount of the asset is reduced to its recoverable amount and
and fair value then complete revaluation by professional
25
resultant impairment losses are recognized in the profit and loss 938 dated 8 February 2016. The tenure of the bond is 7 years and
account. the redemption of the Bond has been started from the year 2019
However, the Bank has no such condition which makes any and the Bond will be fully redeemed in the year 2023.
indication that might be suggestive for a heightened risk of
existence of impairment at the reporting date. The Bank issued 2nd Non-Convertible, Redeemable, Unsecured
Floating Rate Subordinated Bond of BDT 5,000,000,000 with
2.2.1.7. Leases approval of Bangladesh Bank vide letter no.
IFRS 16: Leases has come into force on 1 January 2019, as BRPD(BFIS)661/14B(P)/2021-4427 dated 30 May 2021 and
adopted by the Institute of Chartered Accountants of Bangladesh Bangladesh Securities and Exchange Commission vide letter no.
(ICAB). As Bangladesh Bank (BB) has no other alternative BSEC/CI/DS-144/2021/442 dated 30 June 2021. The bond was
regulation or guidance regarding the same, IFIC Bank applied fully subscribed on 14 September 2021. The tenure of the bond is
IFRS 16 in its financial statements where the Bank measured the 7 years and will be fully redeemed in the year 2028.
lease liability at the present value of the remaining lease
payments, discounted it using the bank’s incremental borrowing 2.2.1.9. Other liabilities
rate at the date of initial application, and recognized a right-of-use Other liabilities comprise items such as provision for loans and
asset at the date of initial application on a lease by lease basis. advances, investment, other assets, provision for taxes, interest
payable, interest suspense, lease liability and accrued expenses.
Right-of-use assets (ROU) Other liability is recognized in the balance sheet according to the
The Bank recognizes right-of-use assets at the date of initial guideline of Bangladesh Bank, IAS and IFRS, Income Tax
application of IFRS 16. The ROU asset is initially measured at cost Ordinance 1984 and internal policies of the bank. Provisions and
at the amount of the lease liability plus any initial direct costs accrued expenses are recognized in the financial statements when
incurred by the lessee and depreciated using the straight line the bank has a legal or constructive obligation as a result of past
methods from the commencement date (from the beginning of event, it is probable that an outflow of economic benefit will be
2019) to the earlier of the end of the useful life of the right of use required to settle the obligation and a reliable estimate can be
asset or the end of the lease term. made of the amount of the obligation.
Lease Liability i. Provision for loans and advances

At the commencement date of lease, the bank recognizes lease The rates of provision by classification of loans and advances are
liabilities measured at the present value of the lease payments to disclosed in note number 15.1.1 and 15.2.1 of the financial
be made over the lease term using incremental borrowing rate at statements. Summary of the same as follows:
the date of initial application. Lease liability is measured by
increasing the carrying amount to reflect interest on the lease Types of loans and Provision
liability, reducing the carrying amount to reflect the lease advances STD SMA SS DF BL
payments. Housing 1% 1% 20% 50% 100%
Finance (HF)
Short-term lease and leases of low value assets Professional 2% 2% 20% 50% 100%
Consumer
The Bank has elected not to recognize ROU assets and lease
Finance
Other than HF 5% 5% 20% 50% 100%

liabilities for leases of low value assets and short term leases for & prof. to set
which the lease term ends within 12 months of the date of initial up business
application. The Bank recognizes lease payments associated with Loan to broker house, 2% 2% 20% 50% 100%
these lease as an expense. merchant banks, stock
dealers etc.
The impact of the new standard on lessees’ financial statements Short-term agri-credit 1% 1% 5% 5% 100%
are: and micro credit
- An increase in recognized assets and liabilities; Small and medium 0.25 0.25 20% 50% 100%
- More lease expenses recognized in early periods of lease, enterprise finance % %
and less in the later periods of a lease; Others 1% 1% 20% 50% 100%
- A shift in lease expense classification from rental expenses to
Loan under Deferral
interest expense and depreciation 1%
during COVID 19
Off-balance sheet 1%
2.2.1.8. Subordinated Bond ii. Provision for taxation
The Bank issued 1st Non-Convertible, Redeemable, Unsecured Income tax on profit for the period comprises current and deferred
Floating Rate Subordinated Bond of BDT 3,500,000,000 with tax and is based on the applicable tax law in Bangladesh. It is
consent of Bangladesh Securities and Exchange Commission vide recognized in the Profit and Loss Account.
letter no. BSEC/CI/DS-32/2015/644 dated 28 December 2015 and
Bangladesh Bank vide letter no. BRPD (BFIS) 661/ 14B (P)/2016-
26
quarterly basis and certified by the Bank's external auditors on a
a. Current tax semi-annual basis.
Current tax is the tax expected to be paid on the taxable profit for
the period, calculated using tax rates as prescribed in the Income v. Provision for Off-balance sheet items
Tax Ordinance (ITO) 1984 and relevant Statutory Regulatory In line with the BRPD Circular number 10, 14, 01, 07 and 13 dated
Orders (SRO) and any adjustment (excess or deficit) in respect of 18 September 2007, 23 September 2012, 03 January 2018, 21
previous years. Currently the income tax rate applicable for banks June 2018 and 18 October 2018 respectively, general provision at
is 37.50%. The estimation of current tax provision involves making the rate 0% to 1% has been made against off balance sheet
judgments regarding admissibility of certain expenses as well as exposures (mainly contingent assets/liabilities).
estimating the amount of other expenses for tax purposes.
2.2.1.10. Employee benefits
b. Deferred tax
The Bank accounted for deferred tax assets or liabilities based on i. Short-term employee benefits
deductible or taxable temporary differences between the carrying Short-term employee benefits are employee benefits which fall due
amount of its assets and liabilities used for the financial reporting wholly within 12 months after the end of the period in which the
and its tax base as per IAS 12: Income Taxes, Income Tax employees render the related service including salaries, bonuses
Ordinance (ITO) 1984 and BRPD circular no. 11 dated 12 and other allowances. Payments are charged as an expense in the
December 2011 issued by the Bangladesh Bank. Deferred tax profit and loss account as they fall due. Payments due are accrued
assets, including specific provision on doubtful and bad/loss as a liability in “Provisions for liabilities and charges” on an
against the classified loans and advances, the tax effects of undiscounted basis.
income tax losses and credits available to be carried forward, are
recognized only to the extent that it is probable that future taxable ii. Post-employment benefits
profits will be available against which the deductible temporary Post-employment benefits are employee benefits, which are
differences or unused tax losses and credits can be utilized. payable after the completion of employment as per respective
Deferred tax assets and liabilities are reviewed at each reporting plan:
date and are measure at the prevailing tax rate as per tax laws that
are expected to be applied when assets are realized and liabilities Provident fund (Defined Contributory Plan)
are settled. Any unrecognized deferred tax assets and liabilities "Defined Contribution Plan" is a post-employment benefit plan
are reassessed if that has become probable that future taxable under which an entity pays fixed contribution into a separate entity
profit or loss will be available on which it could be used or settled. and will have no legal constructive obligation to pay further
amounts. Provident fund benefits are given to the staff of the bank
As there is no significance difference between Solo and in accordance with the registered Provident fund rules. The
consolidated basis deferred tax, the Bank does not disclosed commissioner of Income Tax, Dhaka has approved the Provident
consolidated deferred tax separately. Fund as a recognized fund within the meaning of section 2(52)
read with the provisions of part - B of the First Schedule of Income
iii. Provision for diminution in value of investment Tax Ordinance 1984. The recognition took effect from 20 May
1987. The fund is operated by a Board of Trustees consisting of 05
Provision for diminution of value of quoted shares and mutual (five) members of the bank. All confirmed employees of the bank
funds (closed-end), placed under other liability, has been made on are contributing 10% of their basic salary as subscription of the
portfolio basis (gain net off) following DOS circular no. 4 dated 24 fund. The bank also contributes equal amount of the employees'
November 2011 and DOS circular letter no. 3 dated 12 March contribution to the fund. Upon completion of 5 years of service
2015 respectively. In case of unquoted shares, provision has been length after confirmation employees are entitled to 100% of
made based on available latest Net Asset Value (NAV) of employer's contribution along with his/her own contribution.
respective number of units. Interest earned from the investments is credited to the members'
account on half yearly basis.
Provision against investment in associate/joint venture have been
calculated and maintained if cost is higher than lower of NAV or Gratuity Fund (Defined Benefit Plan)
market value as the case may be in line with the instructions of Gratuity fund benefits are given to the staff of the bank in
Bangladesh Bank. accordance with the approved Gratuity fund rules. National Board
of Revenue has approved the Gratuity fund as a recognized
iv. Provision for Nostro Account Gratuity fund on 8 October 2007. The fund is operated by a Board
of Trustees consisting of 6 (six) members of the bank. Employees
Provision has been made against unsettled nostro transactions as are entitled to Gratuity benefit after completion of minimum 10
per circular letter number FEPD (FEMO)/01/2005-677 dated 13 (ten) years of service in the Company. The Gratuity is calculated
September 2005 issued by Foreign Exchange Policy Department on the basis of average basic pay earned during immediately
of Bangladesh Bank. In line with this circular management of the preceding 12 months and is payable at the different applicable rate
Bank review the outstanding entries of nostro accounts on
27
on the year of service as defined in the "IFIC Bank Employees' Bank and the amount of the dividend can be measured reliably as
Gratuity Fund" which is a funded Gratuity Fund. per IFRS 9: Financial Instruments.
Worker's Profit Participation Fund (WPPF) iv. Fees and commission income
Consistent with the industry practice and in accordance with the Fees and commission includes benefits arising on financial and
Banking Companies Act 1991, no provision has been made for other services provided by the bank including trade finance,
WPPF. credit/debit cards, remittances, locker facilities, SMS banking and
service charge on various accounts etc. Fees and Commission
iii. Other Employee Benefits income arises on services rendered by the Bank are recognized on
Life Insurance a realization basis.
The objective of the scheme is to provide death or permanent
disability benefits to its confirmed employees and their families v. Exchange gain/(loss)
based on the designation as defined in Insurance Coverage Exchange gain/(loss) includes all gains and losses from foreign
Scheme of the Bank. currency transactions.
vi. Gain or loss on Fixed Assets
Hospitalization Insurance The gain or loss on disposal of fixed assets is determined as the
The Bank has introduced a health insurance scheme to its difference between the carrying amount of the assets at the time of
confirmed employees and their spouse with 2 (two) children at disposal and the proceeds of disposal. The gain or loss arising on
rates provided in the Insurance Coverage Scheme of the Bank. disposal is recognized as other income in the period in which the
significant risks and rewards of ownership and transferred to
Mandatory Annual leave / Leave Fare Assistance buyer.
The provision for leave fare assistance represents the current
outstanding liability to employees at the balance sheet date. Leave 2.2.3. Expenses
Fare Assistance (LFA) is a non-recurring benefit for all permanent 2.2.3.1. Interest paid on deposits and borrowings
employees of the Bank who are entitled to annual leave. According
to Bangladesh Bank policy all permanent employees have to avail Interest expenses are recognized on accrual basis and payments
15 consecutive days of mandatory leave and LFA will be given in are made based on nature of product and agreed terms.
this / for the leave period.
2.2.3.2. Management and other expenses
Subsidized loan scheme General and administrative expenses of the Bank are recognized
IFIC has scheme to provide Salary Over Draft and Staff House on accrual basis.
Building Loan to its eligible staff as per policy of the Bank.
2.2.4. Shareholders’ equity
2.2.2. Income 2.2.4.1. Share capital
Revenue recognition i. Authorized capital

Authorized capital is the maximum amount of share capital that the
i. Interest income bank is authorized by its Memorandum and Articles of Association
In terms of the provision of the IFRS-15 interest income is
recognized on an accruals basis, interest on loans and advances ii. Paid up share capital
ceases to taken into income when such advances are classified, Paid up share capital represents total amount of shareholder
kept in interest suspense account under liabilities. Interest on capital that has been paid in full by the ordinary shareholders.
classified advances is accounted for to income account on Holders of the ordinary shares are entitled to receive dividends as
realization basis as per Bangladesh Bank guidelines. declared from time to time and are entitled to vote at shareholders'
meetings. In the event of a winding-up of the company, ordinary
ii. Investment income shareholders rank after all other shareholders and creditors and
Income on investments is recognized on accrual basis. Investment are fully entitled to any residual proceeds of liquidation.
income includes interest on treasury bills, treasury bond and term
placement with others banks and financial institutions. Capital
gain/loss on investment is recognized at the time of realization. 2.2.4.2. Statutory reserve
As per the section 24 (1) of the Banking Companies Act, 1991 as

iii. Dividend income on shares amended, the Bank is required to transfer at least 20% of its
Dividends are recognized as income when the Bank's right to current year profit before tax to the statutory reserve until such
receive payment of the dividend is established and probable that reserve equals to Paid up capital.
the economic benefits associated with the dividend will flow to the
28
2.2.4.3. Fixed assets revaluation reserve The basis of computation of number of shares is in line with the
provisions of IAS 33: Earnings per share. The logic behind this
When an asset’s carrying amount is increased as a result of a basis is, that the bonus shares are issued to the existing
revaluation, the increase amount is directly credited to equity shareholders without any consideration, and therefore, the number
under the head of revaluation reserve as per IAS 16: Property, of shares outstanding is increased without an increase in
Plant and Equipment. The Bank revalued the land which is resources generating new earnings. In contrast, other shares were
absolutely owned by the Bank and the increased amount was issued against consideration in cash or in kind, and accordingly
transferred to revaluation reserve. there is an increase in recourses generating new earnings.
2.2.4.4. Non-controlling interest

iii. Diluted earnings per share
Non-controlling interests are measured at their proportionate share No diluted earnings per share is required to be calculated for the
of the acquires identifiable net assets at the date of acquisition as period as there was no dilutive potential ordinary share during the
per IFRS 3: Business Combinations. The bank presents the non- period.
controlling interests in the consolidated balance sheet within
equity, separately from the parent owner’s equity as per IFRS 10:
Consolidated Financial Statements. Changes in Group's interest in 2.2.5.2. Related party transactions
a subsidiary that do not result in a loss of control are accounted for As per IAS 24: Related Party Disclosures, parities are considered
as equity transaction as per IFRS 10. The Bank attributes the profit to be related if one of the parties has the ability to control the other
and loss to the owners of the parent and to the non-controlling party or exercise significant influence over the other party in
interests even if the results in the non-controlling interest having a making financial and operating decisions. Parties are also
deficit balance as per provision of IFRS 10. When the proportion of considered to be related if they are subject to common control or
the equity held by the non-controlling interests changes, the bank common significant influence. The Bank carried out transactions in
adjusted the carrying amounts of the controlling and non- the ordinary course of business on an arm's length basis at
controlling interests to reflect the changes in their relative interests commercial rates with related parties. Related party transaction is
in the subsidiary and recognized directly in equity for any a transfer of resources, services, or obligations between related
difference between the amount by which the non-controlling parties, regardless of whether a price is charged as per IAS 24:
interest are adjusted and the fair value of the consideration paid or Related Party Disclosures, Bangladesh Bank and BSEC
received, and attribute it to the owners of the parent by as per guidelines. The related party transactions of bank are disclosed in
provision of IFRS 10. Annexure-F.
2.2.5. General 2.2.5.3. Operating segments

2.2.5.1. Earnings per share (EPS)
The Bank has identified the reportable segments based on the
Earnings Per Share (EPS) has been computed as per IAS 33: geographical locations which are the consolidated major strategic
Earnings Per Share by dividing the basic earning by the weighted business units/entities. The strategic business units offer different
average number of ordinary Shares outstanding during the products and services, which are managed separately based on
reporting period. the management and internal reporting structure of the group.
Details of the segment of the Bank have been disclosed in
i. Basic earnings per share Annexure-H.
This represents earnings for the period attributable to ordinary
shareholders. As there was no preference shares, the net profit 2.2.5.4. Events after the reporting period
after tax for the period has been considered as fully attributable to All material event occurring after the reporting period has been
the ordinary shareholders. This has been calculated by dividing the considered and where necessary, adjusted for or adequately
net profit after tax attributable to the ordinary shareholders by the disclosed in the financial statements as per IAS 10: Events after
weighted average number of ordinary shares outstanding during the Reporting Period. Overall effect of COVID 19 global pandemic
the period. on Bank's business in the post years is still evolving at this point,
there has been limited impact assessed on the business since the
ii. Weighted average number of outstanding ordinary outbreak. The Board and Management are regularly monitoring the
shares potential impact of the pandemic on the Bank as the situation
This represents the number of ordinary shares outstanding at the continues to deteriorate but are assured that any foreseeable
beginning of the year plus the number of ordinary share issued adverse impact can be reasonably managed.
during the period multiplied by a time weighted factor. The time-
weighted factor is the numbers of days the specific shares were 2.2.6. Risk management
outstanding as a proportion of the total number of days in the year. Risk is the exposure to uncertainty and risk exposure is the extent
to which an entity is sensitive to underlying risks. As risk is an
inherent part of the business activities, risk management is
29
essential for ensuring sustainability of the business. Type of risk Asset Liability Management (ALM) of the Bank manage Balance
may vary from business to business, however, preparing a Sheet Risk, including managing the liquidity and interest rate risk.
comprehensive risk management plan involves a collaborative To address all the risk elements of the Balance Sheet, Assets
process. Bangladesh Bank issued revised risk management Liabilities Committee (ALCO) Meetings are conducted at least on a
guideline in October 2018, which forms the basis of risk monthly basis. ALM desk of the Bank analyses the Balance Sheet
management. Risk management among banks broadly cover core Risk and prepares the monthly ALCO Papers as per the guidelines
risk areas of banking, i.e. credit risk, asset liability management of Bangladesh Bank. A monthly projection of fund flows is
risk, foreign exchange risk, money laundering risk, ICC risk and reviewed in ALCO meeting regularly. On monthly basis, ALCO
ICT risk etc. Bangladesh Bank also prescribed that there should be monitors liquidity management by examining key ratios, maximum
a separate desk for each of these risk types under the risk cumulative outflow, upcoming funding requirement from all
management division. business units, asset-liability mismatch etc. The maturity gap of the
assets-liabilities and interest rate movement are also monitored by
In line with the regulatory requirement, IFIC has a board approved the ALCO including the optimum liquidity position of the Bank in
'Risk Management Policy' for managing Core risks and other line with regulatory requirement. All the activities are regulated by
material risks inherent with the banking business. IFIC Bank a board approved Asset Liability Management Guideline that is
manages risk in Strategic layer, Managerial layer and Operational well integrated with the bank’s risk management process.
layer as a part of sound risk management. The Bank has a Risk
Management Committee on behalf of the Board of Directors as
Strategic Layer to oversee the overall risk of the Bank the iii. Foreign exchange risk
Managerial layer is headed by Deputy Managing Director & Chief Foreign Exchange Risk arises from adverse movement in currency
Risk Officer (CRO) and an Operational layer represented by Risk exchange rates engaging in activities starting from basic currency
Management Division. The risk management systems are in place buy, sell, imports, exports and remittances to complex structured
within the Bank which are discuss as follows: products. The foreign exchange risks are measured and monitored
by the Treasury Division of the bank. As per directives of
i. Credit risk Bangladesh Bank, the Bank has formulated and adopted the
Credit risk is one of the major risks out of the six core risks of the treasury policy for managing the foreign exchange risks. Functions
Bank. Credit risk is the risk of loss that may occur from the default of the treasury front, mid and back office have been designated
of any bank borrower or counterparty to repay in accordance with and properly segregated. In addition to the policy guidelines
agreed terms and conditions and/or deterioration of treasury operational guidelines have also been formulated for
creditworthiness. IFIC has a board approved ‘Credit Risk defining the roles and responsibilities of front, back and mid office
Management Policy’ and the CRM works within the scope this so that various foreign exchange transactions can be performed in
defined regulations. Board of Directors is the apex body for credit line with the Bangladesh Bank regulations and Bank's internal
approval of the Bank. However, they delegate authority to the policies and procedures to measure, monitor and mitigate the
Managing Director & CEO or other officers of the Credit Risk foreign exchange risks. Treasury continuously monitors price
Management (CRM) Division. The Board also sets credit policies movements of foreign exchange and uses various hedging
to the management for setting procedures, which together has techniques to manage its open position in such a way that
structured the CRM framework in the bank. minimizes risk and maximizes return.
CRM policy also contain how to manage credit risk in the iv. Money laundering risk
origination process, how to organize, role of board, senior In recognition of the fact that financial institutions are particularly
management and CRM Committee, credit risk mitigation vulnerable to Money Laundering, IFIC has established “Guidelines
strategies, MIS for credit risk, managing problem assets including on Prevention of Money Laundering and Combating Financing of
role of Remedial Asset Management Division and maintenance of Terrorism” as per directives of Bangladesh Bank for strict
adequate provisioning etc. This policy ensures sound practices of compliance. The purpose of this policies is to provide guideline to
effective functioning of the Bank's lending process and develop the comply with all applicable local laws and regulations regarding
strategies for appropriate management, measurement and prevention of Money Laundering and combating Terrorist
monitoring its lending portfolio. Regular monitoring of the ability of Financing, both at country and international level, to safeguard the
borrowers to meet their principal and interest repayment Bank form potential compliances, financial and reputational risks.
obligations is conducted. Credit risk is monitored by reference to Suspicious Activity Report (SAR), Suspicious Transaction Report
risk grading and managed by limiting the aggregate exposure to (STR), Cash Transaction Report (CTR), Know Your Customer
any individual counter party, group of companies or industry as per (KYC) Procedure, e-KYC, Structuring Monitoring Report, periodic
lending cap of the bank and single borrower exposure limit defined review of high and low risk customers, Customer Due Diligence
by Bangladesh Bank. The Bank has defined segregation of duties (CDD), Enhanced Due Diligence (EDD), duties and responsibilities
for all credit risk related activities like credit approval, of Officials etc. have been implemented, reviewed and monitored
administration, monitoring and recovery functions. by the competent authority as procedure of this policy.
ii. Asset liability management risk
30
Training is also given as a continuous process for bank has prepared the way out to mitigate the risk areas as per
creating/developing awareness among officers on AML/CFT laws, their guideline.
rules, regulations, guidelines, policies and circulars. Inspection at
Branches for checking records/activities and for creating  For ensuring cyber security, the bank is continuously
awareness on AML & CFT are also conducted. conducting training on sensitive IT tasks for IT division and
awareness program for creating Cyber Security Awareness for
The CEO’s formal annual commitment to all employees on all employees.
combating Money Laundering (ML) and Financing of Terrorism
(FT) is issued to emphasize on greater due diligence and  The bank is taking data backup on daily basis; one copy is
compliance at all levels of the Bank. being stored in a fire-proof Vault and another copy is being
kept at a remote site to withstand any disaster in Data Centre.
v. Internal control and compliance risk
The Internal Control & Compliance (ICC) Division of the Bank is
working independently to evaluate the Internal Control System of  Upgraded Disaster Recovery (DR) Site ensures any payment
the Bank so as to ensure good governance, transparency & related service to the customers in case of any emergency or
accountability. The ICC Division is conducting comprehensive any disaster at Data Centre. Business continuity Plan has also
internal audit of the branches as well as different been developed.
divisions/departments of Head Office ongoing basis. In line with
the Bangladesh Bank guidelines the Bank has successfully  As per the Bangladesh Bank guideline, the bank has
implemented the effective internal control system guidelines, concentrated on ICT security management. In this regard ICT
formulation of policy guideline, set up of separate organizational Steering Committee and ICT Security Committee have been
structure, segregation of duties and introduction of internal control formed and are working to ensure the overall ICT Security.
process, such as Departmental Control Function Checklist
(DECFL), Quarterly Operation Report (QOR) etc.  The bank has upgraded and introduced the network equipment
including Next-Generation Core Firewall, Internet Firewall,
Being an integral part of daily activities of the Bank, Internal Web Application Firewall (WAF), Software Defined Network
Control & Compliance Division consists of three units namely; (SDN) and Network Access Control (NAC) for enhancing
Compliance, Monitoring and Audit & Inspection. These units look security in the Data Center and Disaster recovery site.
after internal control, operational process very minutely to ensure
the smooth operation of the Bank. Compliance section is  The SWIFT environment of the bank is upgraded and
functioning to ensure compliance with statutory/regulatory segmented from the other enterprise network. World class
requirements and also Bank’s internal policies & procedures for Trade processing system is integrated with the payment
developing compliance culture within the Bank. Monitoring unit is system to mitigate the risk of financial fraud.
responsible for operational performance of branches and head
office to minimize and mitigate the risk factors associated with the  The Bank has implemented a robust and secure mailing
banking business. As an internal watchdog, the Audit and system and incorporated Email Security Solution (ESA).
Inspection unit is conducting Risk Based Audit & Inspection to Availability of Exchange Server in Disaster Recovery Site is
identify, measure, control and mitigate risk factors at the branches completed.
and division of the Bank.
 New Data Center in IFIC tower is inaugurated and is providing
Internal Control Unit (ICU) has also been set-up at the branches value to IT service delivery of the bank. Physical and other
with the existing manpower to minimize irregularities and lapses to appropriate security is being maintained in the workplace to
prevent fraud, forgeries and to avoid operational risks of the Bank. protect ICT resources properly as per the guideline of
'Risk based Internal Audit Policy' and ‘Branch Audit Rating System’ Bangladesh Bank.
are in place in order to upgrade the operational efficiency of the  The bank is maintaining Service Level Agreement (SLA) with
branches. the vendors who are directly involved for providing critical
services on behalf of the bank. The bank is also maintaining
vi. Information and communication technology (ICT) risk insurance coverage for critical IT assets and maintaining IT
IFIC Bank has been pursuing a strategy of “Long Term Assets Inventory.
Sustainable Growth with Low Risk, Low Cost, Best in Class
Service Delivery & Diversified Portfolio”. Therefore the bank has  The Bank is strictly following the Information Security
underlined concentration on creating a technology backbone that Guidelines of Bangladesh Bank which covers Password
can enable IFIC to become the preferred financial service provider. Control, User ID Maintenance, Input Control, Network Security,
To mitigate the technology risk, the bank has taken the following Data Encryption, Virus Protection and Access Control to
steps: Internet and Emailing.
 Conducted Cyber Security Assessment to outline the risky
areas with PwC- an international reputed consulting firm. The
31
 Baseline Security Standard has been developed for desktop, c. Market risk
operating systems, and network, database and security It is the risk of potential losses in the on-balance sheet and off-
devices. balance sheet positions of a bank, steams from adverse
movements in market rates or prices such as interest rates, foreign
 Risk assessment framework and template has been developed exchange rates, equity prices, credit spreads and/or commodity
and introduced for systems and application. prices.
 Security Team regularly conduction Vulnerability Assessment Banks may be exposed to market risk in variety of ways. Market
and Application Security testing. risk exposure-
a) may be explicit in portfolios of securities/equities and
 The bank has also completed all ICT Security documentation instruments that are actively traded;
to ensure security of the ICT Systems and is continuously b) may be implicit such as interest rate risk due to mismatch of
updating them to strengthen security of the systems. assets and liabilities; and
c) may arise from activities categorized as off-balance sheet
 The Bank has introduced Digital Banking Channel to explore items.
the technological door for financial advancement. This platform d. Interest rate risk
can be used through both online and mobile app (which is Interest rate risk may arise from trading portfolio and non-trading
available at Apple store and Google Play store). Using Digital portfolio. The trading portfolio of the Bank consists of government
Banking Channel (IFIC Aamar Bank), customer can make treasury bills, bond, etc. Interest rate risk of non-trading business
transaction within Bank or Other Bank through EFT and RTGS, arises from mismatches between the future yield of an asset and
customer can make credit card payment, standing instruction, its funding cost. Asset Liability Committee (ALCO) of the Bank
cheque book order, request for bank certificate etc. monitors the interest rate movement on a regular basis.
Interest rate risk is the potential impact on a bank's earnings and

vii. Other relevant risks net asset values due to changes in market interest rates. Interest
rate risk arises when a bank's principal and interest cash flows
a. Operational risk (including final maturities), both on-and off-balance sheet, have
Operational risk addresses the risk associated with fraud, forgery, mismatched reprising dates. The amount at risk is a function of the
unauthorized activities, error, omission, system failure and other magnitude and direction of interest rate changes and the size and
external events. These occur mainly due to inadequate or failed maturity structure of the mismatch position. Bank's lending,
internal processes, people and systems, or from external events funding and investment activities give rise to interest rate risk.
(including legal risk). The Bank is managing these risks through Interest rate risk management is conducted within the context of a
written procedures, regular training, and awareness programs and comprehensive business plan.
monitoring of the implementation of these procedures. Internal
Control and Compliance Division of the Bank monitors operational e. Equity price risk
procedure of the Bank. It undertakes periodical and special audit Equity price risk is the risk of losses caused by changes in equity
of the branches and divisions at the Head Office for review of the prices. These losses could arise because of changes in the value
operation and compliance of statutory requirements. The Audit of listed shares held directly by the bank; changes in the value of
Committee of the Board subsequently reviews the reports of the listed shares held by a bank subsidiary; changes in the value of
Internal Control and Compliance Division. listed shares used as collateral for loans from a bank or a bank
subsidiary, whether or not the loan was made for the purpose of
b. Liquidity risk buying the shares; and changes in the value of unlisted shares.
Liquidity risk is the potential for loss to a bank arising from either Bank presses vital importance to measure, monitor, and control
its inability to meet its obligations as they fall due or to fund their equity market risk.
increases in assets as they required without incurring
unacceptable cost or losses. f. Fraud risk
Liquidity risk arises when the cushion provided by the liquid assets Fraud and forgery have become an important issue in recent
are not sufficient enough to meet maturing obligations. years. These have a major impact on our country’s economy,
impeding economic development. IFIC has always been focused in
The objective of liquidity risk management is to ensure that all controlling fraud and forgery by establishing and maintaining
foreseeable funding and payments commitments and deposit proper controlling system. Today, fraud and forgery appear in
withdrawals can be met when due. To this end, the Bank is diverse form. The incidence of fraud may occur due to rapid
maintaining a diversified and stable funding base comprising of changes in technological environment in the banking sector or
retail and corporate deposits maintain balanced tenor and intentional behavioral aspect of the human being. Human
institutional balance. The liquidity management is monitored by fraudulent acts may be committed by outsiders or insiders such as
Asset Liability Committee (ALCO) on a regular basis. employees who are aware of the internal operational process of
the Bank. To take the advantage of the operational process and
32
weakness of the internal control system of the work place, 2.2.8. Directors’ responsibility statement
employees may commit fraudulent activities within the Bank. To The Board of Directors is responsible for the preparation and the
prevent the fraud and forgeries, the Bank has adopted broad financial statements under section 183 of the Companies Act
range of measures to monitor and mitigate the fraud risk which 1994.
involves three steps, fraud prevention, fraud detection and fraud
investigation. Bank considers the best practice to prevent frauds 2.2.9. Management Committee (MANCOM)
and forgeries rather than to detect or investigate. To prevent the
external fraud, Bank regularly arrange training program for its The Management Committee (MANCOM) is functioning as a
executives and staffs working at branch and head office level. structured unit to take important management decisions. Presently,
Internal Control and Compliance unit of the Bank also works very it comprises of members holding key positions in the Management
extensively to ensure the effectiveness of the internal control of the Bank. The Committee is headed by the Managing Director &
system throughout the Bank. Internal Control Unit (ICU) of each CEO who is assisted by Deputy Managing Directors, Heads of
branch and division monitors the transactions process to prevent Divisions of strategically important divisions along with Branch
and detect both internal and external frauds. Managers of large and important Branches. The Managing
Director’s Secretariat provides secretarial services to the
Committee. The members of the Committee, having long
g. Reputation risk experience in commercial banking actives, are concerned with
Reputation risk may arise from the possibility that negative management of respective Divisions as well as monitoring day to
publicity regarding the bank and its business practices, in the day activities taking place in different areas of the Bank.
territory or elsewhere through related entities, and whether
accurate or not, will adversely impact the operations and position Generally the Committee sits at least once in every month to
of the bank. Reputation risk may also arise from an institution, or review and evaluate strategic operational issues of the bank,
an affiliate, being domiciled in a jurisdiction where the legal and identify specific problems which need to be immediately attended,
organizational framework for the regulation and supervision of identify weakness (if any) of the Bank and take remedial measures
financial institutions is generally viewed as failing to meet or any other measures for enhancing the reputation of the Bank.
international standards for the protection of consumers of financial Generally, the MANCOM is concerned with major decision making,
services and for the prevention of sheltering the proceeds of planning and framing of policy guidelines of the Bank.
organized crime.
2.2.10. Credit rating of the bank
The Bank manages the reputation risk ensuring the followings:
The Bank has been awarded its credit rating done by Emerging
a. Management anticipates and responds to changes of a market Credit Rating Limited (ECRL) and Credit Rating Agency of
or regulatory nature that affect its reputation in the market Bangladesh Ltd. (CRAB) based on the financial statements and
place; other relevant information as at and for the year ended 31
b. The Bank effectively develops its polices for risk management December 2020 and 2019 respectively as per BRPD Circular no.
to refrain from committing violations of laws, regulations, best 6 dated 5 July 2006. The following ratings for different years have
banking practices, and consumer rights that could affect its been awarded:
reputation;
c. The Bank has continuous awareness that it is not subject to Rating Status
significant litigation, large monetary losses, or a high volume of Types of Financial
Validity
customer complaints; Rating Statement Long Short Outloo
d. The bank is routinely seen in a leadership role in community Term Term k
development and corporate social responsibility; and Jan to Dec
e. Management has a clear awareness of privacy issues and Entity 2020
AA ST-2 Stable 30-Jun-22
uses customer information responsibly. Jan to Dec
Entity AA2 ST-2 Stable 30-Jun-21
2019
2.2.7. Audit Committee
The Audit Committee of the Board was duly formed by the Board
of Directors of the Bank in accordance with the BRPD circular no. 2.2.11. Compliance report on International Financial
11 dated 27 October 2013 of Bangladesh Bank. Reporting Standards (IFRSs):
Pursuant to the BSEC notification no. BSEC/CMRRCD/2006- In addition to compliance with local regulatory requirements, in
158/207/ADMIN/80 dated 3 June 2018 on Corporate Governance, preparing the Consolidated and Separate Financial Statements,
the current Committee is constituted with three members of the IFIC applied all applicable IASs and IFRSs as adopted by Institute
Board. The details of the Audit Committee is provided in of Chartered Accountants of Bangladesh (ICAB) except those
Annexure-G. described in note 2.1.1. Details are given below:
33
Name of the IFRS IFRS Status IAS
Name of the IAS Status
No. No.
First-time Adoption International Investment Property 40 N/A
1
Financial Reporting Standards N/A Agriculture 41 N/A
Share Based Payment 2 N/A Note: N/A - Not Applicable
Business Combinations 3 Complied
Insurance Contracts 4 N/A * Complied to the extent possible subject to compliance to
Non-current Assets Held for Sale and Bangladesh Bank guidelines in these respect which are disclosed
5 in note 2.1.1.
Discontinued Operations N/A
Exploration for and Evaluation of Mineral
6 New accounting standards not yet adopted
Resource N/A
Financial Instruments: Disclosures 7 Complied* A number of standards and amendments to standards are issued
Operating Segments 8 Complied but not yet effective for annual periods beginning after 1 January
Financial Instruments 9 Complied* 2021 and earlier application is permitted. However, the Bank has
Consolidated Financial Statements 10 Complied not early applied the following new standards in preparing these
Joint Arrangements 11 N/A financial statements.
Disclosure of Interests in Other Entities 12 Complied These amendments have no material impact on the financial
statements of the Bank.
Fair Value Measurement 13 Complied*
Regulatory Deferral Accounts 14 N/A
IFRS 17 Insurance Contract
Revenue from Contracts with Customers 15 Complied*
Insurance Contract are effective for annual periods beginning on or
Leases 16 Complied
after 1 January 2021. Earlier adoption is permitted. This has not
been applied in preparing these consolidated and separate
financial statements.
IAS
Name of the IAS Status
No.
Presentation of Financial Statements 1 Complied*
Inventories 2 Complied
Statement of Cash Flows 7 Complied*
Accounting Policies, Changes in
8 Complied
Accounting estimates & Errors
Events After the Reporting Period 10 Complied
Income Taxes 12 Complied
Property, Plant and Equipment 16 Complied
Employee Benefits 19 Complied
Accounting for Government Grants and
20 N/A
Disclosure of Government Assistance
The Effects of Changes in Foreign
21 Complied
Exchange Rates
Borrowing Costs 23 Complied
Related Party Disclosure 24 Complied
Accounting and Reporting by Retirement
26 N/A
Benefits Plans
Separate Financial Statements 27 Complied
Investment in Associates and Joint
28 Complied
Ventures
Financial Reporting in Hyperinflationary
29 N/A
Economies
Interest in Joint Ventures 31 N/A
Financial Instruments: Presentation 32 Complied*
Earnings Per Share 33 Complied
Interim Financial Reporting 34 Complied
Impairment of Assets 36 Complied
Provisions, Contingent Liabilities and
37 Complied
Contingent Assets
Intangible Assets 38 Complied
34
Notes to the Financial Statements
as at and for the period ended 30 September 2021
Amount in BDT
Group Bank
Particulars Note
30 September 2021 31 December 2020 30 September 2021 31 December 2020
3 Cash
Cash in hand (including foreign currency) 3.1 5,418,380,906 4,088,663,229 5,418,148,996 4,084,799,668
Balance with Bangladesh Bank and its agent 3.2 15,681,491,634 14,407,730,302 15,681,491,634 14,407,730,302
bank(s) (including foreign currency)
21,099,872,540 18,496,393,531 21,099,640,630 18,492,529,970
3.1 Cash in hand (including foreign currency)

Local currency in hand 5,199,451,007 3,897,956,857 5,199,219,097 3,894,093,296
Foreign currencies in hand 40,343,507 48,580,124 40,343,507 48,580,124
Cash with ATM 178,586,392 142,126,248 178,586,392 142,126,248
5,418,380,906 4,088,663,229 5,418,148,996 4,084,799,668
3.2 Balance with Bangladesh Bank and its agents bank

Bangladesh Bank
Local currency 14,169,236,954 12,617,035,050 14,169,236,954 12,617,035,050
Foreign currency 1,193,969,268 1,294,221,438 1,193,969,268 1,294,221,438
15,363,206,222 13,911,256,488 15,363,206,222 13,911,256,488
Sonali Bank as agent of Bangladesh Bank 318,285,412 496,473,814 318,285,412 496,473,814
15,681,491,634 14,407,730,302 15,681,491,634 14,407,730,302
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with section 33 of the
Banking Companies Act 1991 (as amended up to date) and MPD circular no. 2, dated 3 April 2020, and MPD circular no. 2, dated 10 December 2013.
3.3.1 Cash Reserve Requirement (CRR)

As per Bangladesh Bank issued MPD Circular no. 3 dated 9 April 2020 [effective from 15 April 2020], all scheduled banks have to maintain a CRR of a
minimum of 3.5% [Y2020: 3.5%] on daily basis and 4.0% [Y2020: 4.0%] on bi-weekly basis based on weekly average demand and time liabilities
excluding inter-bank deposits of immediate preceding two months [i.e., CRR of September 2021 as based on a weekly average balance of July 2021 ].
CRR maintained by the Bank as per statutory requirement is shown below:
Average time and demand liabilities 329,542,070,000 286,188,268,000

Required reserve 13,181,522,000 11,444,715,000
Actual reserve maintained* 14,090,302,600 12,795,868,070
Surplus 908,780,600 1,351,153,070
* As per Bangladesh Bank current account statement.
3.3.2 Statutory Liquidity Ratio (SLR)
As per Bangladesh Bank MPD circular no. 2 dated 10 December 2013 [effective from 1 February 2014], all scheduled banks have to maintain SLR of a
minimum of 13.0% of weekly average demand and time liabilities excluding inter-bank deposits of immediate preceding two months [i.e., SLR of
September 2021 was based on a weekly average balance of July 2021]. SLR maintained by the Bank as per statutory requirement is shown below:
Average time and demand liabilities 329,542,070,000 286,188,268,000

Required reserve 42,840,469,000 37,204,475,000
Actual reserve maintained 58,615,429,451 52,908,409,407
Surplus 15,774,960,451 15,703,934,407
Actual reserve maintained for SLR
Cash in hand 3.1 5,418,148,996 4,084,799,668
Balance with Bangladesh Bank in excess of CRR 908,780,600 1,351,153,070
Balance with Sonali Bank as agent 3.2 318,285,412 496,473,814
Government securities (HFT) 6.3 5,057,934,001 10,541,051,600
Government securities (HTM) 6.3 46,912,280,442 36,434,931,255
58,615,429,451 52,908,409,407
4 Balance with other banks and financial institutions

In Bangladesh 4.1 4,117,557,279 6,682,557,302 4,919,053,142 7,511,869,424
Outside Bangladesh * 1,869,903,909 1,385,770,211 1,854,513,708 1,383,521,545
5,987,461,188 8,068,327,513 6,773,566,850 8,895,390,969
* Details of Balance with outside Bangladesh [solo basis] are shown in "Annexure-A".
35
Amount in BDT
Group Bank
Particulars Note
4.1 In Bangladesh
In current deposit account with
Agrani Bank Limited 11,039,907 17,556,362 11,039,907 17,556,362
Sonali Bank Limited 32,123 35,023,733 32,123 35,023,733
11,072,030 52,580,095 11,072,030 52,580,095
In special notice deposit account with
Trust Bank Limited 78,037,578 73,068,651 78,037,578 73,068,651
Standard Chartered Bank 63,450,740 66,693,489 63,450,740 66,693,489
141,488,318 139,762,140 141,488,318 139,762,140
In beneficiary owner (BO) account with
IFIC Securities Limited - - 801,495,863 829,312,122
Latif Securities Limited 28,834 28,834 28,834 28,834
Asian Tiger Capital Partners Investments Limited 48,113,430 3,331,566 48,113,430 3,331,566
48,142,264 3,360,400 849,638,127 832,672,522
In short term & fixed deposit account with banks and NBFIs
Short term deposit
South Bangla Bank Limited 400,000,000 - 400,000,000 -
Midland Bank Limited 600,000,000 - 600,000,000 -
Jamuna Bank Limited 1,600,000,000 - 1,600,000,000 -
NCC Bank Limited 700,000,000 - 700,000,000 -
NRB Commercial Bank Limited 450,000,000 - 450,000,000 -
Bank Asia Limited - 900,000,000 - 900,000,000
Social Islami Bank Limited - 450,000,000 - 450,000,000
Bank Alfalah Limited - 850,000,000 - 850,000,000
Midland Bank Limited - 450,000,000 - 450,000,000
3,750,000,000 2,650,000,000 3,750,000,000 2,650,000,000
Fixed deposit
Investment Corporation of Bangladesh - 3,670,000,000 - 3,670,000,000
Peoples Leasing & Financial Services Limited 166,854,667 166,854,667 166,854,667 166,854,667
166,854,667 3,836,854,667 166,854,667 3,836,854,667
4,117,557,279 6,682,557,302 4,919,053,142 7,511,869,424
4.2 Maturity grouping of balance with other banks and FIs
Receivable on demand 1,850,702,613 362,557,302 2,652,198,476 1,191,869,424
Upto 1 month 3,969,903,909 4,035,770,211 3,954,513,707 4,033,521,545
More than 1 month but not more than 3 months 166,854,666 3,670,000,000 166,854,666 3,670,000,000
More than 3 months but not more than 6 months - - - -
More than 6 months but not more than 1 year - - - -
More than 1 year but not more than 5 years - - - -
More than 5 years - - - -
5,987,461,188 8,068,327,513 6,773,566,850 8,895,390,969
5 Money at call and on short notice

Banking companies
National Bank Limited - 200,000,000 - 200,000,000
Modhumoti Bank Limited - 230,000,000 - 230,000,000
Dhaka Bank Limited 1,000,000,000 1,900,000,000 1,000,000,000 1,900,000,000
Investment Corporation of Bangladesh 3,300,000,000 - 3,300,000,000 -
4,300,000,000 2,330,000,000 4,300,000,000 2,330,000,000
6 Investments
Government Securities 6.1 51,974,111,543 46,979,431,855 51,974,111,543 46,979,431,855
Other Investments 6.2 11,242,079,917 11,120,648,728 5,346,037,972 5,742,993,615
63,216,191,460 58,100,080,583 57,320,149,515 52,722,425,470
6.1 Government securities
Treasury bills 6.1.1 5,057,934,001 10,541,051,600 5,057,934,001 10,541,051,600
Treasury bonds 6.1.2 46,912,280,442 36,434,931,255 46,912,280,442 36,434,931,255
Prize bond 3,897,100 3,449,000 3,897,100 3,449,000
51,974,111,543 46,979,431,855 51,974,111,543 46,979,431,855
36
Amount in BDT
Group Bank
Particulars Note
6.1.1 Treasury bills

91 Days Govt Treasury Bill - 2,699,526,000 - 2,699,526,000
182 Days Govt Treasury Bill - 3,640,558,100 - 3,640,558,100
364 Days Govt Treasury Bill 5,057,934,001 4,200,967,500 5,057,934,001 4,200,967,500
5,057,934,001 10,541,051,600 5,057,934,001 10,541,051,600
6.1.2 Treasury bonds
2 years Treasury bond 8,576,864,547 11,283,962,191 8,576,864,547 11,283,962,191
46,912,280,442 36,434,931,255 46,912,280,442 36,434,931,255
6.2 Other investments
Unquoted shares 99,088,970 125,048,970 42,847,220 68,807,220
Quoted shares 5,429,056,840 5,595,547,248 2,135,059,327 2,526,209,347
Mutual funds 267,986,473 267,986,473 267,986,473 267,986,473
Foreign Investment 5,445,947,634 5,132,066,037 2,900,144,952 2,879,990,576
11,242,079,917 11,120,648,728 5,346,037,972 5,742,993,615
Details of investment in shares [solo basis] are shown in "Annexure-B".
On the 13th of July 2021, the Board of Directors of the Bank has decided to withdraw the investment from Nepal by selling the entire shareholding of the
IFIC Bank held in Nepal Bangladesh Bank Ltd. as promoter and to repatriate the fund to Bangladesh. This is subject to execution of an agreement with
suitable buyer at a desired price and all necessary approvals from the regulatory authorities in Bangladesh and Nepal.
6.3 Government securities classified according to Bangladesh Bank Circular

Held for trading (HFT) 5,057,934,001 10,541,051,600 5,057,934,001 10,541,051,600
Held to maturity (HTM) 46,912,280,442 36,434,931,255 46,912,280,442 36,434,931,255
Other securities 6.1 3,897,100 3,449,000 3,897,100 3,449,000
51,974,111,543 46,979,431,855 51,974,111,543 46,979,431,855
6.4 Maturity grouping of investments
On demand 1,771,462,905 953,449,000 1,771,462,905 953,449,000
Up to 1 month 3,444,882,025 3,312,985,939 3,444,882,025 3,312,985,939
Over 1 month but not more than 3 months 6,294,499,860 7,130,355,380 3,194,614,822 4,061,017,479
Over 3 months but not more than 6 months 1,189,693,146 3,694,425,420 1,189,693,146 3,694,425,420
Over 6 months but not more than 1 years 4,829,463,462 6,865,721,529 4,829,463,462 6,865,721,529
Over 1 year but not more than 5 years 21,710,940,234 21,971,225,013 21,710,940,234 21,981,612,395
Over 5 years 23,975,249,828 14,171,918,301 21,179,092,921 11,853,213,708
63,216,191,460 58,100,080,583 57,320,149,515 52,722,425,470
6.5 Disclosure regarding outstanding Repo and Reverse Repo
Disclosure regarding outstanding Repo
Sl. Counterparty name Agreement date Reversal date Amount
- - -
- - -
Disclosure regarding outstanding Reverse Repo
Sl. Counterparty name Agreement date Reversal date Amount
1 Trust Bank Ltd. 29/09/2021 3/10/2021 1,767,565,800
Total - - 1,767,565,800
Disclosure regarding overall transaction of Repo and Reverse Repo
Minimum Maximum Daily average
Counterparty name outstanding in Q3- outstanding in Q3- outstanding in Q3-
Y2021 Y2021 Y2021
Securities sold under Repo
With Bangladesh Bank - - -
With other Banks and FIs - - -
Securities purchased under Reverse Repo

From Bangladesh Bank - - -
From other Banks and FIs 303,465,750 1,999,826,600 94,957,736
37
Amount in BDT
Group Bank
Particulars Note
7 Loans and advances
Loans, cash credit, overdraft etc. 7.1 278,009,370,247 247,051,243,375 276,837,876,966 246,004,105,427
Bill purchased and discounted 8 15,833,548,860 14,646,184,098 15,833,548,860 14,646,184,098
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.1 Loans, cash credit, overdraft etc.
Inside Bangladesh
Term loan industrial 19,335,257,248 18,131,446,121 19,335,257,248 18,131,446,121
Term loan consumer finance 175,293,992 170,452,264 175,293,992 170,452,264
Agricultural loan 350,564,407 286,356,663 350,564,407 286,356,663
Term loan women entrepreneur 31,165,834 32,775,026 31,165,834 32,775,026
Term loan-others 90,876,944,689 76,226,478,748 90,876,944,689 76,226,478,748
House building loans 53,699,295,324 42,944,834,123 53,699,295,324 42,944,834,123
Staff loan 1,100,631,944 1,266,619,147 1,100,631,944 1,266,619,147
Transport loan 56,891,832 76,702,824 56,891,832 76,702,824
Loan general 3,319,319,908 3,277,257,317 3,319,319,908 3,277,257,317
Demand loan 7,714,389,245 8,658,568,399 7,714,389,245 8,658,568,399
Overdrafts 69,655,784,550 60,985,063,864 72,445,038,308 63,845,327,297
Cash credit 22,555,217,730 23,785,985,647 22,555,217,730 23,785,985,647
Credit card finance 139,182,199 143,384,520 139,182,199 143,384,520
Loan against trust receipt (LTR) 3,039,871,406 4,877,015,257 3,039,871,406 4,877,015,257
Lease finance 199,789,711 227,184,826 199,789,711 227,184,826
Margin loan 3,960,747,039 3,907,401,381 - -
276,210,347,058 244,997,526,127 275,038,853,777 243,950,388,179
Outside Bangladesh
Term Loan-Foreign Currency (OBU) 1,799,023,189 2,053,717,248 1,799,023,189 2,053,717,248
278,009,370,247 247,051,243,375 276,837,876,966 246,004,105,427
7.2 Net loans and advances including bills purchased and discounted
Total loans and advances 293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
Provision against loans and advances (9,100,014,138) (7,637,565,576) (8,868,717,299) (7,406,268,737)
Interest suspense account (9,544,496,868) (8,972,123,118) (8,043,654,058) (7,471,280,308)
275,198,408,101 245,087,738,778 275,759,054,469 245,772,740,479
7.3 Residual maturity grouping of Loans, cash credit, overdraft etc.

On demand 65,174,415,928 69,365,480,414 65,174,415,928 69,365,480,414
Up to 1 month 6,562,693,954 4,636,346,663 6,562,693,954 4,636,346,663
Over 3 months but not more than 1 years 38,848,836,091 20,913,449,237 38,848,836,091 20,913,449,237
Over 5 years 71,141,039,113 76,572,867,151 71,141,039,113 76,572,867,151
278,009,370,247 247,051,243,375 276,837,876,966 246,004,105,427
7.4 Loans and advances under broad categories
In Bangladesh
Loans 183,009,114,209 159,419,930,431 181,837,620,928 158,372,792,483
Cash credit 22,555,217,730 23,785,985,647 22,555,217,730 23,785,985,647
Overdrafts 72,445,038,308 63,845,327,297 72,445,038,308 63,845,327,297
278,009,370,247 247,051,243,375 276,837,876,966 246,004,105,427
Bill purchased and discounted 8 15,833,548,860 14,646,184,098 15,833,548,860 14,646,184,098
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.5 Loans and advances on the basis of significant concentration
Loans and advances to Directors, executives and others
Loans and advances to directors and their allied concerns - - - -
Loans and advances to Managing Director, Senior Executives and Staffs
1,100,631,944 1,266,619,147 1,100,631,944 1,266,619,147
Advances to customers' groups 292,742,287,163 260,430,808,326 291,570,793,882 259,383,670,378
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
38
Amount in BDT
Group Bank
Particulars Note
7.6 Loans and advances allowed to each customer exceeding 10% of Bank's total capital
Number of customers 27 28
Outstanding - Funded 109,944,603,226 107,020,256,369
Outstanding - Non-funded 26,175,300,000 13,890,600,000
Amount classified - -
Amount of loans and advances (comprising funded and non funded facilities) to each customer exceeding BDT 3,857 million [Y2020 BDT 3,129 million]
representing 10% of the Bank's total capital (as defined in Bank Companies Act 1991 as amended) as at 30 September 2021 are furnished in Annexure-
C.
7.7 Industry wise position of loans and advances including bills purchased and discounted
Agriculture 1,524,069,266 1,549,034,081 1,524,069,266 1,549,034,081
Jute 5,216,142,409 4,688,649,495 5,216,142,409 4,688,649,495
Textile 13,056,061,221 12,008,054,318 13,056,061,221 12,008,054,318
Garments 43,770,380,616 36,205,734,042 43,770,380,616 36,205,734,042
Chemical and chemical products 125,653,218 54,928,753 125,653,218 54,928,753
Cement 3,034,972,497 2,242,982,069 3,034,972,497 2,242,982,069
Bricks & ceramic 4,391,384,073 1,228,855,597 4,391,384,073 1,228,855,597
Food products & processing 5,061,701,572 5,614,527,142 5,061,701,572 5,614,527,142
Engineering & metal 6,291,480,248 5,970,450,060 6,291,480,248 5,970,450,060
Drugs & pharmaceuticals 1,653,806,737 882,241,618 1,653,806,737 882,241,618
Hospital & clinics 79,012,235 94,862,671 79,012,235 94,862,671
Paper & paper products 3,015,028,178 2,951,564,934 3,015,028,178 2,951,564,934
Other small industries 10,061,894,738 8,937,475,690 10,061,894,738 8,937,475,690
IT sector 4,678,418,002 4,488,377,896 4,678,418,002 4,488,377,896
Other service industries 25,895,497,902 27,835,622,387 25,895,497,902 27,835,622,387
Trade & commerce 22,398,033,402 23,358,849,646 22,398,033,402 23,358,849,646
Transport 1,172,523,607 1,214,043,298 1,172,523,607 1,214,043,298
Construction firms/companies 25,799,705,943 19,969,381,860 25,799,705,943 19,969,381,860
Housing societies/companies 32,938,175,805 31,426,089,915 32,938,175,805 31,426,089,915
Cold storage 36,490,384 53,439,785 36,490,384 53,439,785
Consumer finance 56,493,787,120 45,925,172,870 56,493,787,120 45,925,172,870
Energy 8,907,303,627 8,243,559,495 8,907,303,627 8,243,559,495
Telecommunication 10,122,015,547 9,655,497,612 10,122,015,547 9,655,497,612
NBFI's 50,528,708 8,201,326 50,528,708 8,201,326
Others 8,068,852,055 7,089,830,914 6,897,358,773 6,042,692,966
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.8 Sector wise position of loans and advances including bills purchased and discounted
Government sector - - - -
Other public sector - - - -
Private sector 293,795,882,075 261,691,807,454 292,624,388,794 260,644,669,506
Co-operative sector 47,037,032 5,620,019 47,037,032 5,620,019
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.9 Geographical location-wise loans and advances including bills purchased and discounted
Dhaka division 253,734,001,874 223,022,107,064 252,562,508,592 221,974,969,117
Chittagong division 21,143,386,430 20,697,570,914 21,143,386,430 20,697,570,914
Sylhet division 1,794,163,531 1,619,909,173 1,794,163,531 1,619,909,173
Rajshahi division 6,727,596,716 6,454,997,299 6,727,596,716 6,454,997,299
Khulna division 4,456,574,515 4,257,671,076 4,456,574,515 4,257,671,076
Barisal division 1,906,124,687 987,915,973 1,906,124,687 987,915,973
Rangpur division 976,538,730 2,922,144,063 976,538,730 2,922,144,063
Mymensingh division 3,104,532,625 1,735,111,910 3,104,532,625 1,735,111,910
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
39
Amount in BDT
Group Bank
Particulars Note
7.10 Business segment-wise concentration of loans and advances as per CL
Corporate 208,414,339,242 186,464,843,732 207,242,845,961 185,417,705,784
SME 30,079,711,189 29,464,095,457 30,079,711,189 29,464,095,457
Short term agri credit 1,096,949,129 1,181,874,743 1,096,949,129 1,181,874,743
Consumer (including staff) 5,671,765,226 5,758,860,305 5,671,765,226 5,758,860,305
Others 48,580,154,321 38,827,753,236 48,580,154,321 38,827,753,236
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.11 Loans and advances including bills purchased and discounted as per CL
Continuous loan
Consumer finance 3,884,086,770 3,359,204,861 3,884,086,770 3,359,204,861
Small and medium enterprise 19,438,128,453 20,555,584,599 19,438,128,453 20,555,584,599
Loans to BHs/MBs/SDs 30,030,278 10,572,037 30,030,278 10,572,037
Other continuous loans 70,455,508,630 62,251,447,133 69,284,015,349 61,204,309,185
93,807,754,131 86,176,808,630 92,636,260,850 85,129,670,682
Demand loans
Consumer finance 789,066,864 779,815,020 789,066,864 779,815,020
Other demand loans 27,745,775,197 29,115,536,486 27,745,775,197 29,115,536,486
31,651,265,296 33,176,408,140 31,651,265,296 33,176,408,140
Term loan
Consumer finance (including staff, other than HF) 998,611,592 1,619,840,424 998,611,592 1,619,840,424
Housing finance (HF) 48,496,431,489 38,746,079,105 48,496,431,489 38,746,079,105
Loans to BHs/MBs/SDs 53,692,554 71,102,094 53,692,554 71,102,094
Other fixed term loan 110,213,055,415 95,097,860,113 110,213,055,415 95,097,860,113
167,286,950,551 141,162,335,960 167,286,950,551 141,162,335,960
Short term loan
Short term agri credit 1,096,949,129 1,181,874,743 1,096,949,129 1,181,874,743
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.12 Security/collateral-wise concentration of loans and advances including bills purchased and discounted
Collateral of movable/immovable assets 245,766,785,546 212,556,605,934 245,766,785,546 212,556,605,934
Local banks and financial institutions' guarantee 315,733,220 240,986,168 315,733,220 240,986,168
Government guarantee 755,519,134 811,142,115 755,519,134 811,142,115
Foreign bank guarantee - - -
Export documents 919,163,483 1,075,423,583 919,163,483 1,075,423,583
Import documents 11,685,820,804 13,097,388,867 11,685,820,804 13,097,388,867
Fixed deposit receipts 5,684,603,568 7,537,789,233 5,684,603,568 7,537,789,233
Personal guarantee 8,073,535,082 7,768,832,141 8,073,535,082 7,768,832,141
Other securities 20,641,758,271 18,609,259,430 19,470,264,989 17,562,121,483
293,842,919,107 261,697,427,473 292,671,425,826 260,650,289,525
7.13 Particulars of loans and advances

i) Loans considered good in respect of which the Bank is fully
284,458,708,545 252,738,072,864
secured
ii) Loans considered good for which the Bank holds no other
139,182,198 143,384,520
security than the debtors' personal guarantee
iii) Loans considered good being secured by personal security of
8,073,535,082 7,768,832,141
one or more persons in addition to the personal security of the
debtors
iv) Loans adversely classified; provision not maintained there
- -
against
292,671,425,826 260,650,289,525
40
Amount in BDT
Group Bank
Particulars Note
v) Loans due by directors or officers of the banking company or
any of these either separately or jointly with any other persons. 1,100,631,944 1,266,619,147
vi) Loans due from companies or firms in which the directors of

the banking company have interests as directors, partners or - -
managing agents or in case of private companies as members;
vii) Maximum total amount of advances, including temporary

advances made at any time during the period to directors or
employees of the Bank or any of them either separately or 1,280,861,121 1,453,455,114
jointly with any other person
viii) Maximum total amount of advances, including temporary

advances granted during the period to the companies or firms
in which the directors of the Bank are interested as directors, - -
partners or managing agents or in the case of private
companies as members
ix) Due from banking companies - -
x) a) Amount of classified loan on which interest has not been
charged should be mentioned as follows:
Increase/(decrease) in specific provision 186,288,070 (349,126,284)
Amount of loan written off - -
Amount recovered against the loans previously written off 208,510,143 363,275,164
b) Amount of provision kept against loans 2,638,733,000 2,455,830,502
classified as bad/loss as at the Balance Sheet date
c) Amount of interest creditable to the interest suspense account 1,184,883,013 1,477,570,087

xi) Cumulative amount of written off loan:
Opening balance 14,701,301,803 15,064,576,967
Amount written off during the period - -
Interest charged - -
Recovery from written-off during the period* (208,510,143) (363,275,164)
14,492,791,660 14,701,301,803
* Recovery from written-off loans during the period include interest waiver of BDT 74,040,000 [Y2020: Interest waiver BDT 17,175,347].
7.14 Cumulative amount of written off loans for which law suits have been filed
Opening balance 20,972,282,771 20,972,282,771
During the period - -
20,972,282,771 20,972,282,771
Out of this cumulative amount of written-off loans, no suit could be filed for recovery of Tk. 43.8 million for becoming time barred.
7.15 Classification of loans and advances
Unclassified
Standard 275,881,149,390 245,050,321,578
Special mention account 5,290,504,813 5,254,206,092
281,171,654,204 250,304,527,669
Classified
Substandard 2,986,398,988 2,782,581,601
Doubtful 570,237,794 463,122,331
Bad/Loss 7,943,134,840 7,100,057,923
11,499,771,622 10,345,761,856
292,671,425,826 260,650,289,525
8 Bills purchased and discounted
Payable in Bangladesh 8.1 15,133,681,240 14,141,724,304 15,133,681,240 14,141,724,304
Payable outside Bangladesh 8.1 699,867,620 504,459,794 699,867,620 504,459,794
15,833,548,860 14,646,184,098 15,833,548,860 14,646,184,098
41
Amount in BDT
Group Bank
Particulars Note
8.1 Bill purchased and discounted
Payable in Bangladesh
Local bills/documents
Inland documentary bill purchase (IDBP) 788,386,313 659,374,049 788,386,313 659,374,049
Payment against documents-cash 63,003,822 139,983,935 63,003,822 139,983,935
Payment against documents-EDF 11,750,945,426 9,880,117,837 11,750,945,426 9,880,117,837
Payment against documents-forced (Inland) 1,305,254,543 1,361,594,788 1,305,254,543 1,361,594,788
Payment against documents-forced (Foreign) 199,510,520 664,145,629 199,510,520 664,145,629
Payment against documents-Others 1,026,580,616 1,436,508,066 1,026,580,616 1,436,508,066
15,133,681,240 14,141,724,304 15,133,681,240 14,141,724,304
Payable outside Bangladesh
Foreign documentary bill purchase (FDBP) 384,134,400 263,473,626 384,134,400 263,473,626
Usance Bill Discounted (OBU) 315,733,220 240,986,168 315,733,220 240,986,168
699,867,620 504,459,794 699,867,620 504,459,794
15,833,548,860 14,646,184,098 15,833,548,860 14,646,184,098
8.2 Residual maturity grouping of bill purchased and discounted

On demand 5,201,176,461 4,651,948,851 5,201,176,461 4,651,948,851
Up to 1 month 765,907,739 1,312,579,764 765,907,739 1,312,579,764
Over 3 months but not more than 6 months 6,025,509,400 4,729,856,640 6,025,509,400 4,729,856,640
Over 6 months 1,022,222,861 2,925,275,633 1,022,222,861 2,925,275,633
15,833,548,860 14,646,184,098 15,833,548,860 14,646,184,098
9 Fixed assets including premises, furniture and fixtures

Cost/revalued:
Land 2,423,609,559 2,423,609,559 2,423,609,559 2,423,609,559
Buildings and premises 1,902,617,204 1,902,617,204 1,902,617,204 1,902,617,204
Right of Use Assets 1,981,900,504 1,979,330,915 1,938,582,527 1,938,582,527
Wooden furniture 322,716,174 288,496,137 321,801,576 287,581,539
Steel furniture 133,312,431 111,193,993 133,312,431 111,193,993
Computer equipment 1,162,625,267 1,054,899,844 1,149,139,554 1,049,746,984
Office equipment 1,271,660,218 1,085,482,116 1,271,660,218 1,085,482,116
Electrical & gas equipment 347,294,435 292,981,559 344,717,835 290,404,959
Leasehold improvement 691,806,327 528,640,273 679,152,895 508,637,207
Vehicles 208,353,474 212,708,501 208,353,474 212,708,501
Soft furnishing 13,119,919 12,960,055 13,119,919 12,960,055
Software 1,120,365,197 1,108,927,318 1,118,111,167 1,107,209,905
11,579,380,709 11,001,847,474 11,504,178,359 10,930,734,549
Capital work in progress 171,351,376 88,200,413 171,351,376 88,200,413
11,750,732,085 11,090,047,887 11,675,529,735 11,018,934,962
Less: Accumulated depreciation 4,154,168,284 3,552,923,311 4,124,802,189 3,523,762,842
Written down value 7,596,563,802 7,537,124,576 7,550,727,546 7,495,172,120
Details of fixed assets [solo basis] are shown in "Annexure-D"
10 Other assets
Stationery and stamps 42,564,602 42,897,670 42,562,124 42,895,192
Suspense account 10.1 1,124,569,918 850,058,824 1,112,988,358 840,559,567
Advance, deposit and prepayments 10.2 9,336,230,208 7,545,055,046 8,964,264,843 7,208,526,113
Accrued interest & other income receivable 10.3 1,561,177,810 1,323,991,985 1,474,237,810 1,323,991,985
Investment in subsidiaries 10.4 - - 2,634,426,980 2,234,342,260
Deferred tax assets 10.5 808,950,441 731,058,171 808,173,461 730,988,041
Dividend Receivable and others 176,058,596 933,675,990 157,867,695 71,181,064
13,049,551,575 11,426,737,686 15,194,521,271 12,452,484,222
42
Amount in BDT
Group Bank
Particulars Note
10.1 Suspense account
Advance against bills, new branches 157,944,531 61,807,914 157,944,531 61,807,914
Advance against TA / DA 978,400 1,012,700 978,400 1,012,700
Law charges 314,611,043 297,658,828 314,611,043 297,658,828
Sanchaypatra paid 298,712,470 239,526,291 298,712,470 239,526,291
Wage earners development bond paid 146,526,915 98,125,282 146,526,915 98,125,282
Investment bond 26,932,500 12,174,046 26,932,500 12,174,046
Sundry debtors 131,976,733 139,220,862 120,395,173 129,721,605
Cash incentive audit fees 1,981,000 - 1,981,000 -
Cash incentive remittance 12,184,892 - 12,184,892 -
Payment gateway receivable 32,721,434 532,901 32,721,434 532,901
1,124,569,918 850,058,824 1,112,988,358 840,559,567
10.2 Advance, deposit and prepayments
Rent 479,084,835 300,948,581 478,424,755 299,440,239
Income tax 10.2.1 8,386,065,506 6,932,516,876 8,015,649,101 6,598,635,166
Security deposit including demand note 19,884,874 23,867,575 19,884,874 23,867,575
Car purchase 128,685,436 128,964,094 127,796,556 127,825,212
Money remittance company 20,130,889 265,800 20,130,889 265,800
Protested bills 44,543,206 47,820,206 44,543,206 47,820,206
Cash remittance 122,950,000 78,500,000 122,950,000 78,500,000
Supplier 134,885,462 28,793,262 134,885,462 28,793,262
Lease vehicle - 896,021 - 896,021
Share money deposits - 2,482,632 - 2,482,632
9,336,230,208 7,545,055,046 8,964,264,843 7,208,526,113
10.2.1 Advance income tax
Opening balance on 1 January 6,932,516,876 5,818,370,764 6,598,635,166 5,507,367,245
Add: Payment made during the period 1,453,548,630 1,114,146,112 1,417,013,935 1,091,267,921
Closing balance 8,386,065,506 6,932,516,876 8,015,649,101 6,598,635,166
10.3 Accrued interest & other income receivable

Treasury bonds and bills 769,439,941 624,924,948 769,439,941 624,924,948
Receivables from Government 41,272,375 41,272,375 41,272,375 41,272,375
Interest accrued on loans and advances 746,639,445 648,268,049 659,699,445 648,268,049
Investment on term and call 3,826,049 9,526,613 3,826,049 9,526,613
1,561,177,810 1,323,991,985 1,474,237,810 1,323,991,985
10.4 Investment in subsidiaries
IFIC Securities Limited 2,199,994,000 2,199,994,000
IFIC Investment Limited 399,994,000 -
IFIC Money Transfer (UK) Limited 34,438,980 34,348,260
2,634,426,980 2,234,342,260
10.5 Deferred tax assets
Deferred tax assets have been recognized and measured as per International Accounting Standards 12: Income Taxes and BRPD Circular no. 11, dated
12 December 2011 based on the temporary difference in the carrying amount of the assets and liabilities in the financial statements and its tax base.
Calculation of deferred tax assets is as follows:
Deferred tax assets 1,026,817,755 955,727,024

Deferred tax liabilities (218,644,294) (224,738,983)
Deferred tax assets/(liabilities) 808,173,461 730,988,041
i) Deferred tax on provision for loans and advances classified as doubtful and bad & loss
Carrying amount 2,696,443,247 2,510,293,263
Tax base - -
Deductible/(taxable) temporary difference 2,696,443,247 2,510,293,263
Tax rate 37.50% 37.50%
Closing deferred tax assets/(liabilities) 1,011,166,218 941,359,974
Opening deferred tax assets/(liabilities) 941,359,974 1,057,211,288
Deferred tax (expense)/income (A) 69,806,244 (115,851,314)
43
Amount in BDT
Group Bank
Particulars Note
ii) Deferred tax on fixed assets
Carrying amount 3,913,324,266 3,621,024,521
Tax base 3,330,272,815 3,021,720,566
Deductible/(Taxable) temporary difference 583,051,450 599,303,955
Tax rate 37.50% 37.50%
Closing deferred tax assets/(liabilities) (218,644,294) (224,738,983)
Opening deferred tax assets/(liabilities) (224,738,983) (194,057,071)
Deferred tax (expense)/income (B) 6,094,689 (30,681,912)
iii) Deferred tax on leased assets
Right-of-Use Assets 1,040,893,440 1,354,456,802
Less: Lease Liabilities (938,238,097) (1,199,683,069)
Carrying amount 102,655,343 154,773,733
Tax base 144,392,776 193,085,866
Temporary difference 41,737,433 38,312,133
Tax rate 37.50% 37.50%
Closing deferred tax assets/(liabilities) 15,651,537 14,367,050
Opening deferred tax assets/(liabilities) 14,367,050 6,948,176
Deferred tax (expense)/income (C) 1,284,488 7,418,874
Deferred tax (expense)/income (A+B+C) 77,185,421 (139,114,352)
11 Non-banking assets
Income generating - - - -
Non-income generating 11.1 148,474,800 373,474,800 148,474,800 373,474,800
148,474,800 373,474,800 148,474,800 373,474,800
Through the verdict of honourable court under section 33(7) of the Artharin Adalat Act 2003, the Bank has got absolute ownership on few mortgaged
properties. These properties were recorded at Tk. 373,474,800 as non-banking assets in the year 2013.
11.1 Non-income generating

Balance at the beginning of the period 373,474,800 373,474,800 373,474,800 373,474,800
Add: Addition during the period - - - -
Less: sale during the period (225,000,000) - (225,000,000) -
148,474,800 373,474,800 148,474,800 373,474,800
12 Borrowing from other banks, financial institutions and agents

In Bangladesh 12.1 14,725,000,083 12,512,987,412 14,725,000,083 12,512,987,412
Outside Bangladesh 12.2 188,335,980 508,806,600 188,335,980 508,806,600
14,913,336,063 13,021,794,012 14,913,336,063 13,021,794,012
12.1 In Bangladesh
Term borrowing
Obligation under lease finance - 3,181,639 - 3,181,639
- 3,181,639 - 3,181,639
Refinance from Bangladesh Bank

Export Development Fund (EDF) 11,061,103,527 9,666,178,492 11,061,103,527 9,666,178,492
Small and Medium Enterprise (SME) 302,570,375 324,677,867 302,570,375 324,677,867
Long Term Financing Facility (LTFF) 285,464,152 34,162,919 285,464,152 34,162,919
Stimulus Package 3,075,862,029 2,484,786,495 3,075,862,029 2,484,786,495
14,725,000,083 12,509,805,773 14,725,000,083 12,509,805,773
14,725,000,083 12,512,987,412 14,725,000,083 12,512,987,412
12.2 Outside Bangladesh
Nepal Bangladesh Bank Limited - 508,806,600 - 508,806,600
PBL Finance (HK) Limited 160,464,263 160,464,263
Standard Chartered Bank, Singapure 27,871,718 - 27,871,718 -
188,335,980 508,806,600 188,335,980 508,806,600
Borrowing from outside Bangladesh is used for Off-shore Banking unit.
44
Amount in BDT
Group Bank
Particulars Note
12.3 Secured and unsecured borrowing from other banks,
financial institutions and agents
Secured borrowing - - - -
Unsecured borrowing 14,913,336,063 13,021,794,012 14,913,336,063 13,021,794,012
14,913,336,063 13,021,794,012 14,913,336,063 13,021,794,012
12.4 Maturity grouping of borrowing from other banks,
financial institutions and agents
Payable
On demand - - - -
Up to 1 month 1,333,687,911 1,482,457,108 1,333,687,911 1,482,457,108
Over 3 months but not more than 1 year 9,105,545,539 7,088,478,478 9,105,545,539 7,088,478,478
Over 1 year but not more than 5 years 359,710,362 123,803,291 359,710,362 123,803,291
Over 5 years 133,746,387 135,146,264 133,746,387 135,146,264
14,913,336,063 13,021,794,012 14,913,336,063 13,021,794,012
13 Subordinated debt
Institution wise subscription, redemption, and outstanding amount of the Principal of the Bond are as follows:
Redemption of Outstanding Outstanding
Subscribers Subscribed Amount
Principal 30 September 2021 31 December 2020
IFIC Bank 1st Subordinated debt
Sonali Bank Limited 1,000,000,000 600,000,000 400,000,000 600,000,000
Janata Bank Limited 1,000,000,000 600,000,000 400,000,000 600,000,000
Rupali Bank Limited 1,000,000,000 600,000,000 400,000,000 600,000,000
Agrani Bank Limited 500,000,000 300,000,000 200,000,000 300,000,000
3,500,000,000 2,100,000,000 1,400,000,000 2,100,000,000
IFIC Bank 2nd Subordinated debt

Agrani Bank Limited 1,500,000,000 - 1,500,000,000 -
Janata Bank Limited 1,000,000,000 - 1,000,000,000 -
Dutch Bangla Bank Limited 1,000,000,000 - 1,000,000,000 -
Eastern Bank Limited 1,000,000,000 - 1,000,000,000 -
Mercantile Bank Limited 500,000,000 - 500,000,000 -
5,000,000,000 - 5,000,000,000 -
8,500,000,000 2,100,000,000 6,400,000,000 2,100,000,000
* Details of Subordinated debt are explained in note: 2.2.1.8.
14 Deposits and other accounts
Current deposit and other accounts 14.1 117,658,933,278 92,689,795,114 118,693,864,472 92,715,704,209
Bills payable 14.2 2,038,833,262 2,547,263,402 2,038,833,262 2,547,263,402
Savings bank deposits 14.3 26,203,048,270 25,343,706,980 26,203,048,270 25,343,706,980
Fixed deposits 14.4 179,800,341,797 175,760,802,599 179,800,519,429 175,762,350,267
325,701,156,606 296,341,568,095 326,736,265,433 296,369,024,858
14.1 Current deposit and other accounts
Current accounts 26,358,436,034 20,541,856,918 27,393,367,228 20,567,766,013
IFIC AAMAR account 79,924,409,836 63,263,202,940 79,924,409,836 63,263,202,940
IFIC Shohoj Account 1,870,212,088 869,665,186 1,870,212,088 869,665,186
Foreign currency deposit 390,572,077 330,848,835 390,572,077 330,848,835
Resident foreign currency deposit 47,538,375 48,287,936 47,538,375 48,287,936
Exporters foreign currency account 5,318,432,589 5,189,408,559 5,318,432,589 5,189,408,559
Margin on letters of credit 2,739,970,458 1,462,856,896 2,739,970,458 1,462,856,896
Margin on letters of guarantee 427,831,967 393,140,325 427,831,967 393,140,325
Sundry deposit 14.1.1 581,529,854 590,527,519 581,529,854 590,527,519
117,658,933,278 92,689,795,114 118,693,864,472 92,715,704,209
14.1.1 Sundry deposit
Sundry creditor 70,154,262 109,042,803 70,154,262 109,042,803
Lease deposit 13,745,769 14,727,414 13,745,769 14,727,414
Risk fund-lease, CCS & others 218,057 224,303 218,057 224,303
Clearing collection 56,495,366 22,903,192 56,495,366 22,903,192
45
Amount in BDT
Group Bank
Particulars Note
Card deposit 199,964,732 125,603,536 199,964,732 125,603,536
Sundry deposit BFF 25,912,400 25,912,400 25,912,400 25,912,400
FDD issued but not presented 13,323,391 13,323,391 13,323,391 13,323,391
Key deposit 6,121,875 5,977,675 6,121,875 5,977,675
CIB Charges - 3,173,013 - 3,173,013
Other sundry deposits 195,594,002 269,639,792 195,594,002 269,639,792
581,529,854 590,527,519 581,529,854 590,527,519
14.2 Bills payable
Payment order 2,031,923,041 2,539,556,145 2,031,923,041 2,539,556,145
Demand draft 5,019,143 5,728,179 5,019,143 5,728,179
Security deposit receipt 1,891,078 1,979,078 1,891,078 1,979,078
2,038,833,262 2,547,263,402 2,038,833,262 2,547,263,402
14.3 Savings bank deposit
Savings account 19,988,673,839 19,488,529,745 19,988,673,839 19,488,529,745
Super savings plus 4,357,346,385 4,430,654,105 4,357,346,385 4,430,654,105
Payroll savings 436,105,829 385,717,213 436,105,829 385,717,213
Sanchita-female savings 1,097,508,364 1,038,072,461 1,097,508,364 1,038,072,461
Interest payable on savings deposit 323,413,853 733,456 323,413,853 733,456
26,203,048,270 25,343,706,980 26,203,048,270 25,343,706,980
14.4 Fixed deposit
Special notice deposit (SND) 26,613,557,471 30,028,622,318 26,613,735,103 30,030,169,986
Term deposit 14.4.1 140,898,963,437 134,376,901,295 140,898,963,437 134,376,901,295
Recurring deposit 14.4.2 11,755,049,611 10,660,411,907 11,755,049,611 10,660,411,907
Non resident foreign currency deposit (NFCD) 5,611,922 6,385,181 5,611,922 6,385,181
Export retention quota (ERQ) 527,159,356 688,481,898 527,159,356 688,481,898
179,800,341,797 175,760,802,599 179,800,519,429 175,762,350,267
14.4.1 Term deposit
Fixed deposits 128,179,148,468 120,912,851,010 128,179,148,468 120,912,851,010
Double return deposit scheme 4,922,033,082 5,059,921,698 4,922,033,082 5,059,921,698
Three years deposit plus 3,467,505 3,044,250 3,467,505 3,044,250
Monthly income scheme 4,716,721,029 5,174,309,817 4,716,721,029 5,174,309,817
Monthly income scheme - Arjon 28,750,000 27,950,000 28,750,000 27,950,000
Interest payable on term deposit 3,048,843,353 3,198,824,520 3,048,843,353 3,198,824,520
140,898,963,437 134,376,901,295 140,898,963,437 134,376,901,295
14.4.2 Recurring deposit
Pension savings scheme (PSS) 5,556,608,342 6,261,776,512 5,556,608,342 6,261,776,512
Pension savings scheme - Joma 6,788,627 5,678,197 6,788,627 5,678,197
Flexi DPS - Freedom 1,249,242,400 1,279,477,985 1,249,242,400 1,279,477,985
Millionaire dream plan 587,549,005 558,566,205 587,549,005 558,566,205
School savings plan 21,505,040 28,883,953 21,505,040 28,883,953
IFIC Aamar Bhobishawt 3,954,916,500 2,166,063,856 3,954,916,500 2,166,063,856
Interest payable on recurring deposit 378,439,697 359,965,199 378,439,697 359,965,199
11,755,049,611 10,660,411,907 11,755,049,611 10,660,411,907
14.5 Deposit and other accounts of the banks
Deposit form banks 14.9 118,380,375 116,847,774 118,380,375 116,847,774
Deposit from customers 325,582,776,231 296,224,720,321 326,617,885,058 296,252,177,084
325,701,156,606 296,341,568,095 326,736,265,433 296,369,024,858
14.6 Payable on demand and time deposit
Demand deposits
Current deposits 109,123,762,055 85,747,181,227 110,158,870,882 85,774,637,990
Savings deposits 2,358,274,344 2,280,933,628 2,358,274,344 2,280,933,628
Sundry deposit 3,749,332,278 2,446,524,742 3,749,332,278 2,446,524,742
Bills payable 2,038,833,262 2,547,263,402 2,038,833,262 2,547,263,402
117,270,201,939 93,021,902,999 118,305,310,766 93,049,359,762
46
Amount in BDT
Group Bank
Particulars Note
Time deposits
Savings deposits 23,844,773,926 23,062,773,351 23,844,773,926 23,062,773,351
Fixed deposits 146,804,945,031 140,124,876,059 146,804,945,031 140,124,876,059
Special notice deposits 26,613,735,102 30,030,169,985 26,613,735,102 30,030,169,985
Deposits under schemes 11,167,500,608 10,101,845,701 11,167,500,608 10,101,845,701
208,430,954,667 203,319,665,096 208,430,954,667 203,319,665,096
325,701,156,606 296,341,568,095 326,736,265,433 296,369,024,858
14.7 Sector-wise concentration of deposits and other accounts
Government deposits 4,152,522,239 7,529,049,900 4,152,522,239 7,529,049,900
Other public sector 30,519,410,880 36,338,930,114 30,519,410,880 36,338,930,114
Deposit from banks 118,380,375 116,847,774 118,380,375 116,847,774
Foreign currency deposits 5,756,543,041 5,568,545,330 5,756,543,041 5,568,545,330
Private sectors 285,154,300,071 246,788,194,978 286,189,408,897 246,815,651,741
325,701,156,606 296,341,568,095 326,736,265,433 296,369,024,858
14.8 Unclaimed deposits 35,803,244 35,803,244 35,803,244 35,803,244

14.9 Residual maturity grouping of deposits and other accounts
Maturity grouping of deposit from banks
On demand - - - -
Up to 1 month 118,380,375 116,847,774 118,380,375 116,847,774
Over 1 month but not more than 3 months - -
Over 3 months but not more than 1 year - - - -
Over 1 year but not more than 5 years - - - -
Over 5 years - - - -
118,380,375 116,847,774 118,380,375 116,847,774
Maturity grouping of deposit from customers excluding bills payable
On demand 4,233,036,661 5,949,154,679 4,233,036,661 5,949,154,679
Up to 1 month 42,259,965,250 40,783,082,019 42,259,965,250 40,810,538,782
Over 3 months but not more than 1 year 63,031,020,494 64,596,057,382 63,031,020,494 64,596,057,382
Over 5 years 115,257,700,408 101,715,762,047 116,292,809,234 101,710,840,475
323,543,942,969 293,677,456,919 324,579,051,796 293,704,913,682
Maturity grouping of bills payable
On demand 203,883,326 254,726,340 203,883,326 254,726,340
Up to 1 month 407,766,652 509,452,680 407,766,652 509,452,680
Over 1 month but not more than 3 months 407,766,652 509,452,680 407,766,652 509,452,680
Over 3 months but not more than 1 year 203,883,326 254,726,340 203,883,326 254,726,340
Over 1 year but not more than 5 years 407,766,652 509,452,680 407,766,652 509,452,680
Over 5 years 407,766,652 509,452,680 407,766,652 509,452,680
2,038,833,262 2,547,263,402 2,038,833,262 2,547,263,402
325,701,156,606 296,341,568,095 326,736,265,433 296,369,024,858
15 Other liabilities
Specific provision for classified loans and advance 15.1 2,923,864,788 2,737,576,718 2,923,864,788 2,737,576,718
General provision for unclassified loans and advances 15.2 4,976,149,350 3,699,988,858 4,744,852,511 3,468,692,019
Special general provision COVID-19 15.3 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000
Provision for loans and advance 9,100,014,138 7,637,565,576 8,868,717,299 7,406,268,737
Provision for off balance sheet items 15.4 585,171,318 435,409,089 585,171,318 435,409,089
Provision for diminution in value of investments 15.5 355,661,414 354,475,761 355,661,414 354,475,761
Provision for nostro account 15.6 10,734,525 10,646,778 10,734,525 10,646,778
Provision for other assets 15.7 469,068,286 452,469,411 469,068,286 452,469,411
Provision for loans, investments and other assets 10,520,649,681 8,890,566,615 10,289,352,842 8,659,269,776
Provision for taxation 15.8 10,277,495,572 8,398,477,805 9,940,797,244 8,133,240,938
Interest suspense accounts 15.9 9,544,496,868 8,972,123,118 8,043,654,058 7,471,280,308
Incentive bonus 15.10 1,090,182 1,662,000 - -
Unclaimed dividend account 15.11 - 7,736,018 - 7,736,018
Start-up fund 15.12 5,622,475 - 5,622,475 -
47
Amount in BDT
Group Bank
Particulars Note
Lease Liability 973,894,722 1,233,531,392 938,238,097 1,199,683,069
Rebate to good borrowers 21,870,000 21,870,000 21,870,000 21,870,000
Interest payable on borrowing and bond 101,751,623 31,336,762 101,751,623 31,336,762
Accrued expenses 278,367,418 109,026,021 262,004,390 104,222,561
Withholding Tax payable to government * 207,572,415 362,976,044 207,472,048 362,830,343
Withholding VAT payable to government * 92,159,748 111,520,816 92,030,946 111,388,832
Excise duty payable to government * 12,647,646 291,542,361 12,647,646 291,542,361
Revaluation of investment abroad 30,946,297 30,946,297 30,946,297 30,946,297
Payable against Govt Bond & Sanchaypatra 99,747,332 88,416,642 99,747,332 88,416,642
Others 197,095,175 190,550,054 196,892,695 190,229,318
32,365,407,155 28,742,281,946 30,243,027,693 26,703,993,226
* Subsequently deposited to government exchequer.
15.1 Specific provision for classified loans and advances
Provision held at the beginning of the period 2,737,576,718 3,086,703,002 2,737,576,718 3,086,703,002
Less: Fully provided debts written off - - - -
Add: Recoveries of amounts previously written off 134,470,143 161,055,817 134,470,143 161,055,817
Add: Specific provision for the period 41 51,817,927 (510,182,101) 51,817,927 (510,182,101)
2,923,864,788 2,737,576,718 2,923,864,788 2,737,576,718
15.1.1 Specific provision required for classified loans and advances
Required provision
Status of loans and advances Base for provision Rate (%)
30 September 2021 31 December 2020
Sub-standard 1,099,567,629 20% 219,913,526 223,947,988
Sub-standard-Cottage, Micro and Small 145,971,053 5% 7,298,553 3,096,005
Sub-standard- Short term agri. credit 4,189,216 5% 209,462 239,462
Doubtful 66,070,158 50% 33,035,079 36,148,313
Doubtful-Cottage, Micro and Small 121,601,731 20% 24,320,346 17,965,711
Doubtful- Short term agri. credit 7,096,424 5% 354,822 348,736
Bad/loss* 2,388,855,689 100% 2,638,733,000 2,455,830,503
3,833,351,901 2,923,864,788 2,737,576,718
Specific provision maintained (note-15.1) 2,923,864,788 2,737,576,718
Excess/(short) - -
* As per Bangladesh Bank instruction, BDT 28,888,310.97 has been maintained as an additional provision against rescheduling of loans against 2%
down payment in line with the BRPD Circular No. 05 dated 16 May 2019 and the Bank has also maintained provsion of BDT 221 million upto Q3 Y2021
out of BDT 1,473 million as per the requirement of Bangladesh Bank vide its letter no. DBI-1/32/2021/927 dated 31 March 2021.
15.2 General provision for un-classified loans & advances
Adjustment of previously written off loan - 148,377,233 - 148,377,233
Provision made/(release) during the period 41 1,277,959,962 837,830,609 1,277,959,962 837,830,609
4,955,001,785 3,677,041,823 4,723,704,946 3,445,744,984
Off-shore Banking Unit (OBU)
Provision held at the beginning of the period 22,947,035 26,429,201 22,947,035 26,429,201
Provision made/(release) during the period 41 (1,799,470) (3,482,166) (1,799,470) (3,482,166)
21,147,565 22,947,035 21,147,565 22,947,035
4,976,149,350 3,699,988,858 4,744,852,511 3,468,692,019
15.2.1 General provision required for un-classified loans and advances
Required provision
Status of loans and advances Base for provision Rate (%)
Standard
Small and medium enterprise 23,978,990,405 0.25% 59,947,476 59,495,145
Consumer finance (house building) 47,588,819,363 1.00% 475,888,194 381,061,698
Loans to LP/BHs/MBs/SDs share etc. 83,722,832 2.00% 1,674,457 1,633,483
Consumer finance 5,457,228,876 2.00% 109,144,578 85,637,802
Consumer finance (card) 107,521,380 2.00% 2,150,428 2,144,689
Short term agri. and micro-credit 1,019,430,283 1.00% 10,194,303 11,028,830
Staff loan 1,100,631,945 0.00% - -
Other unclassified loan* 74,430,047,892 1.00% 3,802,851,754 2,813,311,889
153,766,392,976 4,461,851,190 3,354,313,536
48
Amount in BDT
Group Bank
Particulars Note
Special Mention Account (SMA)
Small and medium enterprise 128,308,730 0.25% 320,772 393,676
Consumer finance (house building) 366,195,542 1.00% 3,661,955 2,227,205
Consumer finance 14,543,225 2.00% 290,864 45,282
Consumer finance (card) 2,894,975 2.00% 57,899 52,558
Other unclassified loan ** 4,778,562,342 1.00% 90,667,600 88,712,728
5,290,504,813 94,999,090 91,431,449
Off-shore banking unit
Un-classified loans 2,114,756,409 1.00% 21,147,564 22,947,034
2,114,756,409 21,147,564 22,947,034
4,577,997,844 3,468,692,019
General provision maintained (note-15.2) 4,744,852,511 3,468,692,019
Excess/(short) 166,854,667 -
*The Bank has maintained provsion of BDT 1,429 million upto Q3 Y2021 out of BDT 2,890 million as per the requirement of Bangladesh Bank vide its
letter no. DBI-1/32/2020/1543 dated 14 June 2020.
** 1% additional provision has been maintained against the restructured loan in line with the BRPD Circular No. 04, dated 29 January 2015. Details
Restructured Loan are shown in Annexure-J.
15.3 Special general provision COVID-19
1% additional provision has been maintained against the facilities for which payment was deferred during COVID-19 under the purview of BRPD Circular
No. 56, dated 10 December 2020.
15.4 Provision for off-balance sheet

Provision made/(release) during the period 41 149,762,229 (25,492,449) 149,762,229 (25,492,449)
585,171,318 435,409,089 585,171,318 435,409,089
15.4.1 Provision required for off-balance sheet exposure
Required provision
Status Base for provision Rate (%)
Acceptances and endorsements 26,156,452,990 1.00% 261,564,530 163,509,516
Letters of guarantee * 8,750,992,801 1.00% 100,015,960 93,095,955
Irrevocable letters of credit 22,359,082,842 1.00% 223,590,828 178,803,618
Bills for collection 8,459,864,833 0.00% - -
Required provision 585,171,318 435,409,089
Provision maintained (note-15.3) 585,171,318 435,409,089
Excess/(short) - -
As per Bangladesh Bank instruction, BDT 537,544 and BDT 11,968,588 have been maintained as an additional provision against a letter of guarantee of
M/s. Hannan Works and M/s ATCO International, respectively.
15.5 Provision for diminution in value of investments

Provision made/(release) during the period 41 1,185,653 (297,353,559) 1,185,653 (297,353,559)
355,661,414 354,475,761 355,661,414 354,475,761
15.6 Provision for nostro account
Provision made/(release) during the period 41.1 87,747 (12,417) 87,747 (12,417)
10,734,525 10,646,778 10,734,525 10,646,778
15.7 Provision for other assets
Provision made/(release) during the period 41.1 16,598,875 35,983,913 16,598,875 35,983,913
469,068,286 452,469,411 469,068,286 452,469,411
49
Amount in BDT
Group Bank
Particulars Note
15.7.1 Particulars of required provision for other assets
Required provision
Status Base for provision Rate (%) 30 September 2021 31 December 2020
Other assets for 6-12 months 34,789,525 50% 17,394,762 9,942,485
Other assets for more than 12 months 407,130,318 100% 407,130,318 394,706,721
Protested bills 44,543,206 100% 44,543,206 47,820,206
Required provision 469,068,286 452,469,411
Provision maintained (note-15.7) 469,068,286 452,469,411
Excess/(Short) - -
15.8 Provision for taxation
Provision made during the period 1,960,011,461 975,923,486 1,888,550,000 963,000,000
10,358,489,266 8,545,739,066 10,021,790,938 8,280,502,199
Less: Settlement of tax on stock dividend (80,993,694) (147,261,261) (80,993,694) (147,261,261)
10,277,495,572 8,398,477,805 9,940,797,244 8,133,240,938
15.9 Interest suspense account
Balance at the beginning of the period 8,972,123,118 8,134,196,969 7,471,280,308 6,633,354,159
Add: Amount transferred to interest suspense account during the period1,184,883,013 1,477,570,087 1,184,883,013 1,477,570,087
Less: Amount transferred to interest income account during the period (612,509,263) (639,643,938) (612,509,263) (639,643,938)
Less: Amount written-off during the year - - - -
9,544,496,868 8,972,123,118 8,043,654,058 7,471,280,308
15.10 Incentive bonus
Balance at the beginning of the period - 250,000,000 - 250,000,000
Add: Provision made during the period 1,090,182 1,662,000 - -
Less: Paid during the period - (250,000,000) - (250,000,000)
Less: Transfer to income during the period - - - -
1,090,182 1,662,000 - -
15.11 Unclaimed dividend account
More than 5 years & above - 7,736,018 - 7,736,018
- 7,736,018 - 7,736,018
Unclaimed or undistributed dividend amounting BDT 7,677,503.50 has been transferred to the Capital Market Stabilization Fund (CMSF) as per the
notification: SEC/SRMIC/165-2020/part-1/166 dated 06 July 2021 issued by the Bangladesh Securities and Exchange Commission (BSEC).
15.12 Start-up fund has recognised according to BB SME&SP Circular no. 05 dated 26 April 2021 on 1% Net profit for the year ended 31 December 2020.
16 Share Capital
16.1 Authorized Capital
4,000,000,000 ordinary shares of Taka 10 each 40,000,000,000 40,000,000,000 40,000,000,000 40,000,000,000
16.2 Issued, subscribed and fully paid up capital
8,000,000 ordinary shares of Taka 10 each
80,000,000 80,000,000 80,000,000 80,000,000
issued for cash
4,400,000 ordinary shares of Taka 10 each
16.2.1 44,000,000 44,000,000 44,000,000 44,000,000
issued as rights share
563,821,907 ordinary shares of Taka 10
16.2.2 5,638,219,070 5,638,219,070 5,638,219,070 5,638,219,070
each issued as rights share
1,124,645,654 ordinary shares of Taka 10
11,246,456,540 10,436,519,610 11,246,456,540 10,436,519,610
each issued for bonus share
17,008,675,610 16,198,738,680 17,008,675,610 16,198,738,680
16.2.1 The Bank raised paid-up capital of Tk. 44,000,000 through Rights Issue of 440,000 no. of ordinary shares at a ratio of 1R:2 i.e. one rights share for two
existing share at par in the year 1989 which was completed in the month of January 1990, before change of denomination from Tk. 100 to Tk. 10 which
was effected from 4 December 2011.
16.2.2 The Bank raised paid-up capital of Tk. 5,638,219,070 through Rights Issue of 563,821,907 no. of ordinary shares at a ratio of 1R:1 i.e. one rights share
for one existing share at par in the year 2017.
16.3 Issued, subscribed and fully paid up Capital-Shareholders' Category
1,143,857,969 [Year 2020: 1,089,388,542 ordinary shares of
Taka 10 each fully paid held by the Sponsors, Directors, 11,438,579,690 10,893,885,420 11,438,579,690 10,893,885,420
Institutions, Foreign investors & General Public.
557,009,592 [Year 2020: 530,485,326 ordinary shares of Taka
10 each fully paid held by the Government of the People's 5,570,095,920 5,304,853,260 5,570,095,920 5,304,853,260
Republic of Bangladesh.
17,008,675,610 16,198,738,680 17,008,675,610 16,198,738,680
50
Amount in BDT
Group Bank
Particulars Note
16.4 Shareholding by category
Category
No. of Share % Taka No. of Share % Taka
Sponsors & Directors 69,933,264 4.11 699,332,640 66,603,111 4.11 666,031,110
Government (Director also) 557,009,592 32.75 5,570,095,920 530,485,326 32.75 5,304,853,260
Sub-Total 626,942,856 36.86 6,269,428,560 597,088,437 36.86 5,970,884,370
Institutions 433,760,208 25.5 4,337,602,080 470,454,459 29.04 4,704,544,590
Foreign investors 14,349,174 0.84 143,491,740 12,717,884 0.79 127,178,840
General investors 625,815,323 36.80 6,258,153,230 539,613,088 33.31 5,396,130,880
Sub-Total 1,073,924,705 63.14 10,739,247,050 1,022,785,431 63.14 10,227,854,310
Total 1,700,867,561 100 17,008,675,610 1,619,873,868 100 16,198,738,680
The Government is representing in the Board of the Bank by nomination 03 (Three) Directors and as such, Sponsors & Directors are at present holding 36.86% shares
of the Bank.
16.5 Distribution of paid up capital
Holding of share
No. of holder Total shares % No. of holder Total shares %
1 to 500 shares 15,441 2,276,031 0.14 14,608 2,051,350 0.13
501 to 5,000 shares 20,707 41,388,617 2.39 14,325 29,969,707 1.85
5,001 to 10,000 shares 4,491 34,341,071 2.29 3,888 29,134,724 1.80
10,001 to 20,000 shares 3,102 46,044,440 3.23 2,692 39,307,003 2.43
20,001 to 30,000 shares 1,229 30,777,936 2.19 1,151 28,833,294 1.78
30,001 to 40,000 shares 598 21,072,657 1.48 544 19,086,097 1.18
40,001 to 50,000 shares 535 25,089,198 1.61 449 20,831,451 1.28
50,001 to 100,000 shares 928 68,056,086 4.58 783 56,545,941 3.49
100,001 to 1,000,000 shares 844 222,462,111 13.79 697 201,241,451 12.42
More than 1,000,000 shares 135 1,209,359,414 68.30 130 1,192,872,850 73.64
Total 48,010 1,700,867,561 100 39,267 1,619,873,868 100
16.6 Shareholding of Directors
Sl. Name of the Directors Status Holding % Closing Position Opening Position
1 Mr. Salman F Rahman Chairman 2.00 34,026,928 32,406,599
2 Mr. Ahmed Shayan Fazlur Rahman* Vice-Chairman 2.11 35,906,336 34,196,512
3 Ms. Rabeya Jamali Independent Director Nil Nil Nil
4 Mr. Sudhangshu Shekhar Biswas Independent Director Nil Nil Nil
5 Mr. A. R. M. Nazmus Sakib** Govt. nominated Director
6 Ms. Quamrun Naher Ahmed** Govt. nominated Director 32.75 557,009,592 530,485,326
7 Mr. Md. Zafar Iqbal, ndc** Govt. nominated Director
8 Mr. Mohammad Shah Alam Sarwar Managing Director Nil Nil Nil
* Represents M/s. New Dacca Industries Limited against its holding of 2.11% shares in the Bank.
** Directors nominated by the Ministry of Finance, the Govt. of the People's Republic of Bangladesh against its holding of 32.75% shares in the Bank.
16.7 Capital Adequacy Ratio (BASEL-III)

As per section 13(2) of the Banking Companies Act, 1991 (as amended to date), BRPD circular no. 18 dated 21 December 2014, the Guidelines on Risk
Based Capital Adequacy (Revised Regulatory Capital Framework for banks in line with Basel-III) was issued and effective from 1 January 2015. Capital
to Risk-weighted Asset Ratio (CRAR) is calculated as follows:
Common Equity Tier 1 (going-concern capital)
Paid-up capital 16.2 17,008,675,610 16,198,738,680 17,008,675,610 16,198,738,680
Statutory reserve 17 6,864,775,853 6,864,775,853 6,864,775,853 6,864,775,853
General reserve 18 155,071,397 155,071,397 155,071,397 155,071,397
Retained earnings 21 5,571,580,495 4,248,076,927 2,572,596,483 1,775,205,220
29,600,103,355 27,466,662,857 26,601,119,343 24,993,791,150
Less: Regulatory Adjustments:
Deduction from Tier-1 Capital (95% of deferred tax assets) 960,607,907 907,940,673 960,607,907 907,940,673
Total Common Equity Tier 1 Capital 28,639,495,448 26,558,722,185 25,640,511,436 24,085,850,478
51
Amount in BDT
Group Bank
Particulars Note
Tier-2 (Gone-Concern Capital)
General provision 6,761,320,668 5,335,397,947 6,530,023,829 5,104,101,108
Subordinated debt that meet the qualifying criteria for Tier 2 6,400,000,000 2,100,000,000 6,400,000,000 2,100,000,000
Total Tier-2 Capital 13,161,320,668 7,435,397,947 12,930,023,829 7,204,101,108
Total Regulatory Capital (A) 41,800,816,116 33,994,120,132 38,570,535,266 31,289,951,586
Total assets including off-balance sheet items 474,967,427,937 418,513,245,012 470,784,899,903 413,895,445,927
Total risk-weighted Assets 300,685,097,964 262,206,655,232 294,234,166,613 255,638,666,438
Required capital @12.5% (B) 37,585,637,245 32,775,831,904 36,779,270,827 31,954,833,305
Total capital surplus/(Deficit) C=(A-B) 4,215,178,871 1,218,288,228 1,791,264,439 (664,881,718)
Capital to Risk-weighted Asset Ratio (CRAR):
Common Equity Tier 1 to RWA 9.52% 10.13% 8.71% 9.42%
Tier - 2 Capital to RWA 4.38% 2.84% 4.39% 2.82%
Capital to Risk-weighted Asset Ratio (CRAR) 13.90% 12.96% 13.11% 12.24%
Details computation of risk-weighted assets [solo basis] are shown in "Annexure - E"
17 Statutory reserve
Transferred from profit during the period - 332,872,378 - 332,872,378
6,864,775,853 6,864,775,853 6,864,775,853 6,864,775,853
18 General reserve 155,071,397 155,071,397 155,071,397 155,071,397

General reserve also includes the surplus provision of Tk. 99,300,000 against the restructured large loan of RR Holdings which was transferred from the
specific provision in the year 2015 as per BRPD Circular No. 04 dated 29 January 2015 and extra ordinary foreign exchange gain of Tk. 28,559,248
transferred from profit in the year 2010.
19 Revaluation reserve against securities
HTM securities 19.1 49,117,875 80,968,715 49,117,875 80,968,715
HFT securities 19.2 325,326 26,880,411 325,326 26,880,411
49,443,201 107,849,126 49,443,201 107,849,126
19.1 Revaluation reserve HTM securities

Gain/(loss) from revaluation on investments (31,850,840) 32,709,938 (31,850,840) 32,709,938
49,117,875 80,968,715 49,117,875 80,968,715
19.2 Revaluation reserve HFT securities
Gain/(loss) from revaluation on investments (26,555,085) 25,018,051 (26,555,085) 25,018,051
325,326 26,880,411 325,326 26,880,411
20 Revaluation reserve against fixed assets 115,314,704 115,314,704 115,314,704 115,314,704

In terms of International Accounting Standard (IAS) 16: Property, Plant & Equipment and instruction contained in BRPD Circular No. 10, dated 25
November 2002 issued by Bangladesh Bank, gain on revaluation of Tk. 115,314,704 has been credited to the revaluation reserve account.
20.a Consolidated foreign currency translation reserve

IFIC Money Transfer (UK) Limited 1,513,125 1,442,548 - -
Investment in joint venture/associate (NBBL) 81,379,939 119,996,466 - -
Investment in joint venture/associate (OE LLC) 13,366,593 12,649,392 - -
96,259,657 134,088,406 - -
21 Surplus in profit and loss account

Balance at the beginning of the period - - 1,775,205,220 3,018,442,662
Net profit after tax for the period - - 1,612,950,668 562,247,536
Transfer to statutory reserve during the period - - - (332,872,378)
Transfer to Start-up fund of Y2020 (5,622,475) -
Issue of bonus shares - - (809,936,930) (1,472,612,600)
- - 2,572,596,483 1,775,205,220
52
Amount in BDT
Group Bank
Particulars Note
22 Consolidated surplus in profit and loss account

IFIC Bank Limited 21 2,572,596,483 1,775,205,220 - -
IFIC Securities Limited 558,445,206 372,552,596 - -
IFIC Investment Limited 13,868,652 -
IFIC Money Transfer (UK) Limited (24,385,996) (19,110,491) - -
Share of profit of investment in joint venture/associate (NBBL) 2,484,051,152 2,152,120,471 - -
Share of profit of investment in joint venture/associate (OE LLC) 87,239,947 70,358,359 - -
Exchange (gain)/loss on investment in joint venture/associate (NBBL) (106,868,356) (90,399,836) - -
Exchange (gain)/loss on investment in joint venture/associate (OE LLC) (13,366,594) (12,649,393) - -
5,571,580,495 4,248,076,927 - -
23 Non-controlling interest (NCI)
IFIC Securities Limited 23.1 7,523 7,016 - -
IFIC Investment Limited 23.2 6,208 -
IFIC Money Transfer (UK) Limited - - - -
13,731 7,016 - -
23.1 NCI of IFIC Securities Limited
Opening balance on 1 January 7,016 6,880 - -
Add: Share of profit during the period 507 136 - -
7,523 7,016 - -
23.2 NCI of IFIC Investment Limited
Opening balance on 1 January 6,000 - -
Add: Share of profit during the period 208 - -
6,208 - - -
24 Contingent liabilities
Acceptances and endorsements 24.1 26,156,452,990 16,350,951,601 26,156,452,990 16,350,951,601
Letters of guarantee 24.2 8,750,992,801 8,058,992,366 8,750,992,801 8,058,992,366
Irrevocable Letters of credit 24.3 22,359,082,842 17,880,361,773 22,359,082,842 17,880,361,773
Bills for collection 24.4 8,459,864,833 8,193,373,111 8,459,864,833 8,193,373,111
65,726,393,466 50,483,678,851 65,726,393,466 50,483,678,851
24.1 Acceptances and endorsements

Back to back bills (local currency) 279,594,776 279,594,776 279,594,776 279,594,776
Back to back bills (foreign currency) 25,876,858,214 16,071,356,825 25,876,858,214 16,071,356,825
26,156,452,990 16,350,951,601 26,156,452,990 16,350,951,601
24.2 Letters of guarantee

Letters of guarantee (local currency) 8,592,874,724 7,979,200,054 8,592,874,724 7,979,200,054
Letters of guarantee (foreign currency) 158,118,077 79,792,312 158,118,077 79,792,312
8,750,992,801 8,058,992,366 8,750,992,801 8,058,992,366
Money for which the bank is contingently liable in respect of guarantee issued favouring:
Directors - - - -
Government 3,876,728,872 3,819,557,827 3,876,728,872 3,819,557,827
Banks and other financial institutions 1,855,691,070 1,454,967,826 1,855,691,070 1,454,967,826
Others 3,018,572,859 2,784,466,712 3,018,572,859 2,784,466,712
8,750,992,801 8,058,992,366 8,750,992,801 8,058,992,366
24.3 Irrevocable letters of credit
Letter of credit (LC) - cash sight 12,045,399,636 9,102,343,168 12,045,399,636 9,102,343,168
Letter of credit (LC) - back to back 10,147,289,402 8,539,680,148 10,147,289,402 8,539,680,148
Letter of credit (LC) - cash usance 166,393,804 238,338,457 166,393,804 238,338,457
22,359,082,842 17,880,361,773 22,359,082,842 17,880,361,773
24.4 Bills for collection

Inland bills collection 6,312,033 20,994,127 6,312,033 20,994,127
Foreign bills collection - 745,436 - 745,436
Inland documentary bills for collection 3,089,827,097 2,826,418,019 3,089,827,097 2,826,418,019
Foreign documentary bills for collection 5,363,725,703 5,345,215,529 5,363,725,703 5,345,215,529
8,459,864,833 8,193,373,111 8,459,864,833 8,193,373,111
53
Amount in BDT
Group Bank
Particulars Note 1 January to 1 January to 1 January to 1 January to
30 September 2021 30 September 2020 30 September 2021 30 September 2020
25 Income statement
Income
Interest, discount and similar income 26, 28 18,777,983,266 18,723,816,675 18,604,445,463 18,705,691,390
Dividend income 28 45,791,665 36,205,415 44,078,266 33,499,729
Fees, commission and brokerage 29.1 1,455,436,245 928,112,813 1,368,678,188 888,066,456
Gains less losses arising from dealing in securities 28 2,619,192 167,524,486 2,619,192 167,524,486
Gains less losses arising from investment securities 28.1 704,471,981 2,473,651 637,355,790 2,148,772
Gain less losses arising from dealing in foreign currencies 29.2 366,854,276 420,022,802 384,039,997 418,457,383
Other operating income 30 477,501,242 422,574,430 125,547,809 83,070,160
21,830,657,868 20,700,730,272 21,166,764,706 20,298,458,376
Expenses
Interest, fee and commission 27 11,611,578,354 14,208,645,702 11,612,588,608 14,208,648,868
Administrative expenses 31-38 2,982,005,656 2,634,880,376 2,957,119,544 2,610,376,004
Other operating expenses 39, 40 1,041,899,278 880,012,025 1,005,847,599 865,428,431
Depreciation on banking assets 678,378,779 416,653,795 671,280,784 411,022,499
16,313,862,067 18,140,191,897 16,246,836,536 18,095,475,801
Profit before provision 5,516,795,801 2,560,538,374 4,919,928,170 2,202,982,575
26 Interest income
Term loan-industrial 1,202,556,518 1,257,164,448 1,202,556,518 1,257,164,448
Term Loan-Agricultural Loan 17,519,456 182,807,116 17,519,456 182,807,116
Term loan-consumer finance 11,655,966 17,373,116 11,655,966 17,373,116
Term Loan-Housing Finance 3,191,594,256 2,659,855,128 3,191,594,256 2,659,855,128
Term Loan-Transport loan 4,141,004 7,491,538 4,141,004 7,491,538
Term Loan-Lease finance 10,691,481 20,715,000 10,691,481 20,715,000
Term Loan-Foreign Currency (OBU) 77,337,177 90,431,454 77,337,177 90,431,454
Term loan-others 4,142,654,457 4,095,543,084 4,142,654,457 4,095,543,084
Overdrafts 4,522,969,564 4,281,141,510 4,705,448,530 4,281,141,510
Cash credit 1,245,970,321 1,596,282,573 1,245,970,321 1,596,282,573
Credit card 13,460,913 16,376,796 13,460,913 16,376,796
Demand loan 461,433,014 640,658,530 461,433,014 640,658,530
Loan general 89,045,708 106,611,472 89,045,708 106,611,472
Loan against trust receipt (LTR) 279,945,823 491,437,331 279,945,823 491,437,331
Staff loan 29,223,747 41,066,155 29,223,747 41,066,155
Overdue interest 288,042,769 125,103,572 288,042,769 125,103,572
Interest on Margin Loan 356,016,769 18,125,285 - -
Interest income from loans and advances 15,944,258,943 15,648,184,108 15,770,721,140 15,630,058,823
Inland documentary bill purchased (IDBP) 50,901,642 72,091,629 50,901,642 72,091,629
Usance Bill Discounted (OBU) 3,876,862 2,327,616 3,876,862 2,327,616
Payment against document (cash) 5,151,614 31,884,391 5,151,614 31,884,391
Payment against document (forced) 28,173,221 50,157,384 28,173,221 50,157,384
Payment against document (EDF) 150,191,958 171,285,809 150,191,958 171,285,809
Payment against document (inland) 73,111,356 72,646,712 73,111,356 72,646,712
Payment against document (others) 85,079,476 130,951,040 85,079,476 130,951,040
Interest income from bills paid and discounted 396,486,129 531,344,581 396,486,129 531,344,581
Money at call on short notice 7,035,611 71,760,806 7,035,611 71,760,806
Balance held outside Bangladesh 172,456 4,140,078 172,456 4,140,078
Balance held inside Bangladesh 1,261,164 13,172,239 1,261,164 13,172,239
16,349,214,303 16,268,601,812 16,175,676,500 16,250,476,527
27 Interest paid on deposits, borrowings etc.

Interest paid on deposits
Current deposit 3,346,640,672 2,843,281,975 3,347,555,597 2,843,285,141
Saving bank deposit 436,602,329 603,778,113 436,602,329 603,778,113
Special notice deposit 819,680,514 752,121,608 819,775,844 752,121,608
Fixed deposit 5,497,233,451 8,227,763,097 5,497,233,451 8,227,763,097
Non resident FC deposit 92,132 98,287 92,132 98,287
Resident FC deposit 164,988 173,867 164,988 173,867
Pension savings scheme 574,363,430 497,120,854 574,363,430 497,120,854
Monthly income scheme 658,262,065 923,289,467 658,262,065 923,289,467
Foreign currency deposit 220,346 205,716 220,346 205,716
11,333,259,928 13,847,832,984 11,334,270,182 13,847,836,150
54
Amount in BDT
Group Bank
Interest paid on borrowings
Term borrowing 10,379,509 38,547,506 10,379,509 38,547,506
Repurchase agreement (repo) 354,530 - 354,530 -
Bangladesh Bank- Refinance 43,845,364 17,618,158 43,845,364 17,618,158
Payment against lease obligation 79,987 823,818 79,987 823,818
Interest on subordinated bond 114,420,833 186,539,013 114,420,833 186,539,013
Bangladesh Bank- EDF 108,168,811 116,823,549 108,168,811 116,823,549
Bangladesh Bank- LTFF Refinance 1,069,392 460,674 1,069,392 460,674
278,318,426 360,812,718 278,318,426 360,812,718
11,611,578,354 14,208,645,702 11,612,588,608 14,208,648,868
28 Investment income
Interest income
Interest on Treasury bills and bonds 2,176,779,071 2,164,520,965 2,176,779,071 2,164,520,965
Interest on term placement 251,989,892 290,693,898 251,989,892 290,693,898
Interest on reverse repo 2,619,192 167,524,486 2,619,192 167,524,486
Gain/(loss) on share sale 28.1 704,471,981 2,473,651 637,355,790 2,148,772
Dividend income - local 45,791,665 36,205,415 44,078,266 33,499,729
3,181,651,801 2,661,418,416 3,112,822,211 2,658,387,850
28.1 Gain from sale of shares of listed companies

Gain on share sale 792,099,195 6,183,774 724,983,004 5,858,896
Less: Loss on sale of share (87,627,214) (3,710,123) (87,627,214) (3,710,123)
704,471,981 2,473,651 637,355,790 2,148,772
29 Commission, exchange and brokerage

Commission 29.1 1,386,058,953 914,125,732 1,368,678,188 888,066,456
Exchange gain/(loss) 29.2 366,854,276 420,022,802 384,039,997 418,457,383
Brokerage 69,377,292 13,987,080 - -
1,822,290,522 1,348,135,614 1,752,718,186 1,306,523,839
29.1 Commission
Bills purchased (Inland) 182,152 297,917 182,152 297,917
Remittances (inland) 3,812,504 3,684,703 3,812,504 3,684,703
Remittances (foreign) 2,471,686 1,921,874 2,471,686 1,921,874
Letter of guarantee (LG)-local 91,881,351 55,255,405 94,953,351 55,255,405
Letter of credit (back to back) 395,253,769 242,160,982 395,253,769 242,160,982
Letter of credit (cash) 166,770,262 88,521,090 166,770,262 88,521,090
Letter of credit (others) 78,638,249 72,315,287 78,638,249 72,315,287
Wage earners development bond 1,747,813 3,076,563 1,747,813 3,076,563
Local documentary bills collection (LDBC) 1,280,098 1,030,635 1,280,098 1,030,635
Inward foreign documentary bills collection (IFDBC) 166,228,705 85,188,069 166,228,705 85,188,069
Foreign documentary bills collection (FDBC) 984,100 1,184,400 984,100 1,184,400
Foreign bills collection (FBC) 57,737 268,315 57,737 268,315
Add confirmation 28,166,221 12,890,003 28,166,221 12,890,003
Bill collection commission OBU 2,400,905 784,004 2,400,905 784,004
Loan origination fees 102,047,789 72,257,352 102,047,789 72,257,352
Service charge on accounts 129,295,325 115,010,364 128,527,025 115,008,864
Fees and Commission-Cards 86,731,049 53,463,803 86,731,049 53,463,803
Sanchaypatra 20,541,346 94,825 20,541,346 94,825
Foreign correspondent charges 27,499,621 27,428,584 27,499,621 27,428,584
Negotiation against contract 22,403,350 17,383,708 22,403,350 17,383,708
Rebate from foreign correspondent 37,222,332 33,358,678 37,222,332 33,358,678
Commission others 20,442,590 26,549,170 758,125 491,394
1,386,058,953 914,125,732 1,368,678,188 888,066,456
29.2 Exchange gain/(loss)
Exchange gain from revaluation of FC 366,854,276 420,022,802 384,039,997 418,457,383
366,854,276 420,022,802 384,039,997 418,457,383
55
Amount in BDT
Group Bank
30 Other operating income
Locker rent 10,357,400 11,797,265 10,357,400 11,797,265
Cheque Book charge recovery 31,448,812 18,543,386 31,448,812 18,543,386
SWIFT charges recovery 12,674,457 11,302,956 12,674,457 11,302,956
Fund transfer fee 9,248,416 4,609,822 9,248,416 4,609,822
Management fee - Foreign* - 3,185,625 - 3,185,625
Miscellaneous earning 64,959,889 36,816,887 61,818,725 33,631,106
128,688,973 86,255,941 125,547,809 83,070,160
* The Bank has received Management fee from NBBL under Management service/Technical Know-how fee agreement which has credited Bank's Nostro Account in 2020.
31 Salary and allowances

Basic salary 952,963,854 864,264,264 939,817,575 852,958,045
House rent allowance 419,988,729 369,712,948 417,790,292 367,471,282
Conveyance allowance 53,804,465 50,584,388 53,517,554 49,961,481
Medical allowances 91,031,110 82,855,268 90,546,127 82,366,383
Entertainment allowance 25,935,231 31,685,918 25,706,231 31,181,918
Other allowances 64,378,117 139,715,578 63,782,041 139,457,808
Incentive bonus 70,000,002 - 70,000,002 -
Leave encashment 10,943,202 5,930,118 10,943,202 5,930,118
Festival bonus 169,902,572 159,719,130 168,886,109 158,644,130
Leave fare assistance 73,817,365 74,822,747 73,274,365 74,309,747
Provident fund- Bank's contribution 75,799,822 79,574,257 75,799,822 79,574,257
Contribution to gratuity fund 101,000,000 19,000,000 101,000,000 19,000,000
2,109,564,468 1,877,864,616 2,091,063,320 1,860,855,169
Number of employees for the 3rd quarter ended 30 September 2021 who were paid remuneration less than Tk. 36,000 was nil (Q3 2020: nil). Total
number of employees in the Bank at the 3rd quarter ended 30 September 2021 were 3,740 (Q2 2020: 2,660).
32 Rent, taxes, insurance, electricity etc.
Rent paid 191,104,351 260,803,319 189,079,103 258,794,255
Rates & taxes 9,207,311 8,440,893 9,412,889 8,155,820
Insurance premium 188,480,934 155,406,459 188,341,574 155,306,882
Electricity & water 92,029,836 66,829,687 91,430,830 66,400,706
480,822,432 491,480,357 478,264,396 488,657,663
Total office rent expenses for 3rd quarter ended 30 September 2021 are Tk. 530,220,807 Due to application of IFRS 16: Leases , Tk. 344,567,005 has been distributed
as depreciation (Annexure-D) and interest expense (note 40). Required withholding tax and VAT on total rental expense have been deducted and deposited accordingly.
Details are disclosed in Note 2.2.1.7.
33 Legal expenses
Legal expenses 2,059,682 2,376,280 1,390,000 384,112
Professional fees 9,780,758 5,782,796 8,829,772 4,261,511
11,840,440 8,159,077 10,219,772 4,645,623
34 Postage, stamp, telecommunication etc.
Postage expenses 9,956,494 4,286,562 9,946,409 4,282,954
Telephone 18,081,583 13,147,990 17,950,831 13,061,484
Communication facilities 49,206,643 37,256,892 48,922,662 36,964,911
77,244,720 54,691,444 76,819,902 54,309,349
35 Stationery, printing, advertisement etc.
Printing stationery 1,922,662 2,334,273 1,613,953 2,068,679
Security stationery 12,203,948 3,471,933 12,203,948 3,471,933
Petty stationery 29,129,264 12,555,108 29,129,264 12,555,108
Computer stationery 10,970,771 8,663,802 10,970,771 8,663,802
Advertisement and publicity 223,161,133 155,040,736 223,161,133 154,992,345
277,387,778 182,065,851 277,079,069 181,751,867
36 Managing Director's salary
Basic salary 12,622,500 11,475,000 12,622,500 11,475,000
House rent allowance 900,000 900,000 900,000 900,000
Provident fund- Bank's contribution 1,262,250 1,147,500 1,262,250 1,147,500
Festival & Performance bonus 4,085,500 3,805,000 4,085,500 3,805,000
18,870,250 17,327,500 18,870,250 17,327,500
56
Amount in BDT
Group Bank
37 Directors' fees
Meeting attendance fees 3,266,400 1,178,500 1,832,000 1,008,000
3,266,400 1,178,500 1,832,000 1,008,000
Each Director is paid Tk. 8,000 for attending each meeting as per the latest BRPD Circular no. 11, dated 04 October 2015.
38 Auditors' fees*
Statutory annual audit fees 3,009,168 2,113,031 2,970,835 1,820,833
3,009,168 2,113,031 2,970,835 1,820,833
* Audit fee is inclusive of tax and VAT.
39 Depreciation and repair of bank's assets
Depreciation
Buildings and premises 35,187,516 35,316,408 35,187,516 35,316,408
Right of Use Assets 317,453,949 146,449,344 313,563,363 142,944,195
Wooden furniture 18,736,791 15,633,923 18,668,196 15,565,328
Steel furniture 4,736,349 2,936,454 4,736,349 2,936,454
Computer equipment 73,523,661 51,720,570 71,860,492 50,744,626
Office equipment 19,734,325 12,766,968 19,734,325 12,766,968
Vehicles 12,400,478 15,241,858 12,400,478 15,241,858
Soft furnishing 617,410 585,348 617,410 585,348
Software 67,917,254 44,700,139 67,917,254 44,538,313
678,378,779 416,653,795 671,280,784 411,022,499
Repairs and maintenance
Property maintenance and repairs 183,403,844 113,422,563 182,282,757 112,197,104
Vehicles maintenance and repairs 30,944,702 35,539,322 30,750,256 35,539,322
214,348,546 148,961,885 213,033,013 147,736,426
892,727,326 565,615,679 884,313,797 558,758,925
40 Other expenses
Entertainment 17,953,260 20,105,109 17,683,076 19,954,515
Petrol, oil and lubricants 40.1 42,647,911 44,362,148 42,647,261 44,362,148
Training and internship 40.2 4,366,462 6,366,132 4,366,462 6,365,132
Traveling expenses 40.3 17,721,415 43,552,212 17,413,085 43,287,570
Casual and contractual service 40.4 276,347,999 202,454,268 276,093,983 202,326,956
Loss on sales of fixed assets 40.5 15,401,856 3,033,740 15,401,857 305,700
Subscription and donation 31,402,089 82,615,934 30,086,079 82,273,554
Corporate Social Responsibility (CSR) 42,860,226 54,711,318 42,860,226 54,711,318
Books, newspapers and magazines, etc. 562,368 1,387,029 556,798 1,380,649
Interest on leased assets 33,147,930 28,337,203 31,003,642 26,300,195
NID verification charge 1,286,866 435,749 1,286,866 435,749
Reward and recognition 214,950 80,000 214,950 80,000
Uniforms and liveries 1,530 937,218 1,530 937,218
AGM and EGM expense 6,222,866 3,671,361 6,042,066 3,503,361
Business development 4,416,521 8,988,979 4,336,521 8,988,979
Crockeries 1,181,932 722,340 1,173,087 705,410
Security services 153,311,657 111,008,150 152,533,984 110,413,752
Bank charges and commission 16,878,144 10,810,337 5,520,486 5,333,800
Recovery and sales agent 3,541,445 32,184,753 3,541,445 32,184,753
Visa card expense 70,676,592 21,791,562 70,676,592 21,791,562
Branch Charge 8,914,093 8,538,903 8,914,093 8,538,903
Bond & Rights Share issue 38,000,000 53,987 38,000,000 53,987
Miscellaneous 40,492,618 44,901,710 22,460,497 43,456,793
827,550,731 731,050,140 792,814,586 717,692,005
Expenses incurred by the Bank shown in these Financial Statements are inclusive of VAT where applicable as per Value Added Tax and Supplementary Duty Act, 2012.
40.1 Petrol, oil and lubricants
Petrol, oil and lubricants - pool car 14,485,555 10,947,765 14,484,905 10,947,765
Petrol, oil and lubricants - car purchase scheme 28,162,356 33,414,383 28,162,356 33,414,383
42,647,911 44,362,148 42,647,261 44,362,148
40.2 Training and internship expense includes daily allowance and traveling allowances.
40.3 Traveling expense represents foreign and local travel which include daily allowances and traveling allowance.
57
Amount in BDT
Group Bank
40.4 Casual and contractual service
Driver salary - car purchase scheme 30,654,311 36,105,296 30,654,311 36,105,296
DSA salary and incentive 101,295,778 75,003,454 101,295,778 75,003,454
Casual and contractual - staff 144,397,910 91,345,518 144,143,894 91,218,206
276,347,999 202,454,268 276,093,983 202,326,956
40.5 Gain/ (loss) on sales of fixed assets
Cost of fixed assets sold
Wooden furniture 2,434,147 5,253,139 2,434,147 961,616
Steel furniture 872,709 181,629 872,709 181,629
Office equipment 3,285,648 623,899 3,285,648 623,899
Vehicles 4,355,027 - 4,355,027 -
Soft furnishing 330,725 393,008 330,725 56,825
Software 13,000 85,333 13,000 85,333
Non-banking assets 225,410,120 - 225,410,120 -
299,614,324 21,600,271 299,614,324 10,987,925
Less : Accumulated depreciation
Wooden furniture 2,185,399 3,471,818 2,185,399 862,520
Steel furniture 596,276 126,807 596,276 126,807
Office equipment 3,285,597 616,910 3,285,597 616,910
Vehicles 4,355,022 - 4,355,022 -
Soft furnishing 325,463 387,476 325,463 56,821
Software 12,999 85,332 12,999 85,332
70,241,437 17,488,871 70,241,437 9,746,065
Written down value 229,372,887 4,111,399 229,372,887 1,241,859
Sale proceeds of above fixed assets 213,971,031 1,077,659 213,971,031 936,159
Gain / (loss) on sales of fixed assets (15,401,856) (3,033,740) (15,401,856) (305,700)
40.a Details of investment in joint ventures/associates - under equity method
i) Nepal Bangladesh Bank Limited
Opening balance 4,614,483,965 4,025,376,164 - -
Add/ (less): Share of post acquisition profit during the period 331,930,681 319,999,774 - -
Add/ (less): Effect of changes in foreign currency exchange rate (38,616,528) (130,355,258) - -
Closing balance 4,907,798,118 4,215,020,680 - -
ii) Oman Exchange LLC
Opening balance 157,380,003 133,400,738 - -
Add/ (less): Share of post acquisition profit/(loss) during the period 16,881,588 16,318,715 - -
Add/ (less): Effect of changes in foreign currency exchange rate 717,201 (57,356) - -
Closing balance 174,978,792 149,662,096 - -
iii) Share of post acquisition profit during the period
Nepal Bangladesh Bank Limited 331,930,681 319,999,774 - -
Oman Exchange LLC 16,881,588 16,318,715 - -
348,812,269 336,318,489 - -
iv) Investment in joint ventures/associates-under equity method
A. Book value of investment
Nepal Bangladesh Bank Limited 2,449,235,383 2,433,589,228 - -
2,536,974,228 2,509,617,785 - -
B. Cumulative share of post acquisition profit
Nepal Bangladesh Bank Limited 2,458,562,736 1,781,431,452 - -
2,545,802,683 1,855,064,992 - -
Total (A+B) 5,082,776,910 4,364,682,777 - -
58
Amount in BDT
Group Bank
41 Provision for loans, investments and other assets

Specific provision 15.1 51,817,927 (210,716,273) 51,817,927 (210,716,273)
General provision 15.2 1,277,959,962 704,892,541 1,277,959,962 704,892,541
Provision for off-shore banking unit 15.2 (1,799,470) (2,340,737) (1,799,470) (2,340,737)
Special general provision COVID-19 15.3 - - - -
Provision for off-balance sheet exposure 15.4 149,762,229 (57,830,343) 149,762,229 (57,830,343)
Provision for loans and advances 1,477,740,648 434,005,188 1,477,740,648 434,005,188
Provision for diminution in value of investments 15.5 1,185,653 (67,962,184) 1,185,653 (67,962,184)
Other provisions 41.1 16,686,622 47,721,338 16,686,622 47,721,338
1,495,612,923 413,764,342 1,495,612,923 413,764,342
41.1 Other provisions

Provision for nostro account 15.6 87,747 (6,277) 87,747 (6,277)
Provision for other assets 15.7 16,598,875 47,727,615 16,598,875 47,727,615
16,686,622 47,721,338 16,686,622 47,721,338
42 Provision for taxation

Current tax 1,960,011,461 883,754,470 1,888,550,000 880,000,000
Deferred tax expense/(income) 42.1 (77,892,270) 39,914,218 (77,185,421) 40,886,529
1,882,119,190 923,668,688 1,811,364,579 920,886,529
42.1 Deferred tax expense/(income)

Deferred tax on provision for loans and advances (DF & BL) 10.5 (69,806,244) 41,092,159 (69,806,244) 41,092,159
Deferred tax on fixed assets 10.5 (6,801,539) 5,141,919 (6,094,689) 6,114,230
Deferred tax on leased assets 10.5 (1,284,488) (6,319,860) (1,284,488) (6,319,860)
(77,892,270) 39,914,218 (77,185,421) 40,886,529
43 Receipts from other operating activities

Rent received 10,357,400 11,797,265 10,357,400 11,797,265
Other receipts 118,331,573 74,458,676 115,190,409 71,272,895
Capital gain/l(loss) 28.1 704,471,981 2,473,651 637,355,790 2,148,772
833,160,955 88,729,593 762,903,599 85,218,932
44 Cash paid for other operating activities

Postage, stamp, telecommunication etc. 77,244,720 54,399,464 76,819,902 54,309,349
Rent paid 532,246,055 258,794,255 530,220,807 258,794,255
Rates, taxes & utilities 9,207,311 11,536,089 9,412,889 8,155,820
Insurance premium 188,480,934 155,306,882 188,341,574 155,306,882
Electricity & water 92,029,836 66,400,706 91,430,830 66,400,706
Traveling expenses 17,721,415 43,287,570 17,413,085 43,287,570
Auditors' fees 3,009,168 1,820,833 2,970,835 1,820,833
Directors' fees 3,266,400 1,178,500 1,832,000 1,008,000
Legal expenses 11,840,440 6,637,791 10,219,772 4,645,623
Repairs and maintenance 214,348,546 147,736,426 213,033,013 147,736,426
Other expenses 746,342,908 655,298,257 714,604,781 612,634,107
1,895,737,734 1,402,396,774 1,856,299,488 1,354,099,571
45 (Increase)/decrease of other assets

Stationery and stamps 42,564,602 45,638,470 42,562,124 45,638,470
Suspense account 1,124,569,918 1,105,377,278 1,112,988,358 1,105,377,278
Advance, deposit and prepayments 805,771,926 577,168,320 804,222,966 575,096,104
Receivable others 176,058,596 248,838,939 157,867,695 238,679,564
Closing other assets 2,148,965,042 1,977,023,007 2,117,641,143 1,964,791,416
Opening other assets 1,977,023,007 1,835,342,099 1,371,440,904 1,821,092,973
(171,942,035) (141,680,908) (746,200,239) (143,698,443)
59
Amount in BDT
Group Bank
46 Increase/(decrease) of other liabilities
Withholding Tax payable to government 207,572,415 241,150,308 207,472,048 241,150,308
Withholding VAT payable to government 92,159,748 78,785,140 92,030,946 78,785,140
Excise duty payable to government 12,647,646 13,183,207 12,647,646 13,183,207
Dividend payable - 2,814,447 - 2,814,447
Revaluation of investment abroad 30,946,297 30,946,297 30,946,297 30,946,297
Payable against Govt Bond & Sanchaypatra 99,747,332 152,022,993 99,747,332 152,022,993
Others 197,095,175 178,921,845 196,892,695 152,183,950
Closing other liabilities 640,168,613 697,824,237 639,736,964 671,086,342
Opening other liabilities 1,183,801,787 863,523,887 1,078,168,240 827,498,078
(543,633,174) (165,699,650) (438,431,276) (156,411,736)
47 Cash and cash equivalents
Cash in hand 5,418,380,906 3,851,984,084 5,418,148,996 3,847,302,610
Balance with Bangladesh Bank and its agent Bank (s) 15,681,491,634 14,093,353,548 15,681,491,634 14,093,353,548
Balance with other banks and financial Institutions 5,987,461,188 6,596,441,575 6,773,566,850 6,524,181,279
Money at call and on short notice 4,300,000,000 2,740,000,000 4,300,000,000 2,740,000,000
Prize Bonds 3,897,100 3,010,900 3,897,100 3,010,900
31,391,230,828 27,284,790,107 32,177,104,580 27,207,848,337
48 Reconciliation of statement of cash flows from operating activities
Profit before provision 4,919,928,170 2,202,982,575
Adjustment for non cash items
Depreciation on fixed asset 603,363,530 366,484,186
Amortization on software 67,917,254 44,538,313
Adjustment with non-operating activities 671,280,784 411,022,499
Recovery of written off loans 134,470,143 65,799,320
Interest receivable (150,245,825) (262,564,099)
Interest payable on deposits 261,668,576 115,994,895
Exchange gain from revaluation of FC (384,039,997) (418,457,383)
Rent paid - lease adjustment (341,141,704) -
Accrued Expense 157,781,829 66,834,065
Interest on leased assets 31,003,642 26,300,195
(290,503,336) (406,093,006)
Changes in operating assets and liabilities
Changes in loans & advances (31,422,390,620) (21,285,405,117)
Changes in deposit and other accounts 30,176,066,847 24,764,193,356
Changes in other assets (746,200,239) (143,698,443)
Changes in other liabilities (438,431,276) (156,411,736)
(2,430,955,287) 3,178,678,060
Income tax paid (1,417,013,935) (895,508,754)
Net cash flows from/(used in) operating activities 1,452,736,396 4,491,081,373
49 Number of ordinary shares outstanding
Add: Bonus share issued 80,993,693 147,261,260 80,993,693 147,261,260
1,700,867,561 1,619,873,868 1,700,867,561 1,619,873,868
50 Earnings Per Share (EPS)*
Net profit after tax 2,139,062,973 1,223,105,341 1,612,950,668 868,331,704
Number of ordinary shares outstanding 1,700,867,561 1,700,867,561 1,700,867,561 1,700,867,561
Earning Per Share (EPS) 1.26 0.72 0.95 0.51
The consolidated and separate EPS of the Bank as of Q3 Y2021 is higher compared to Q3 Y2020 due to higher level of Net Interest Income, Investment
Income and Fee based income.
51 Net Operating Cash Flow per Share*
Net cash flows from operating activities 1,618,384,787 4,549,170,468 1,452,736,396 4,491,081,373
Number of ordinary shares outstanding in respective periods 1,700,867,561 1,700,867,561 1,700,867,561 1,700,867,561
Net Operating Cash Flow per Share 0.95 2.67 0.85 2.64
The consolidated and separate NOCFPS of the Bank as of Q3 Y2021 is lower compared to Q3 Y2020 due to lower level of deposits growth than lending
growth.
52 Net Asset Value (NAV) per Share*
Net assets value at the end of the period 29,861,120,917 27,678,105,215 26,765,877,248 25,507,228,260
Number of ordinary shares outstanding in respective periods 1,700,867,561 1,700,867,561 1,700,867,561 1,700,867,561
Net Asset Value (NAV) per Share 17.56 16.27 15.74 15.00
* Previous period's figure has been restated.
60
Balance with other Banks and Financial Institutions-Outside Bangladesh
as at 30 September 2021
Annexure-A
Name of the Bank and Financial Account Currency
Conversion Conversion
Institutions type type FC amount Equivalent BDT FC amount Equivalent BDT
rate rate
AB Bank Ltd., Mumbai CD USD 809,289 85.50 69,194,240 395,913 84.80 33,573,878
Amana Bank, Sri Lanka CD USD 41,325 85.50 3,533,314 11,790 84.80 999,805
Bank of Bhutan, Phuentosoling CD USD 77,927 85.50 6,662,729 77,927 84.80 6,608,266
Citi Bank N.A. New York CD USD 2,029,548 85.50 173,526,376 1,290,776 84.80 109,459,226
Commerz Bank AG, Frankfurt CD USD 784,976 85.50 67,115,444 870,894 84.80 73,852,764
Commerz Bank AG, Frankfurt CD EUR 201,667 99.15 19,996,194 259,390 103.87 26,943,552
Habib Bank, New York CD USD 925,462 85.50 79,127,033 642,042 84.80 54,445,833
Habib Bank AG, Zurich CD CHF 72,458 91.45 6,626,165 16,161 95.87 1,549,398
ICIC Bank Ltd., India CD USD 834,676 85.50 71,364,810 777,170 84.80 65,904,870
J.P. Morgan Chase Bank AG, Frankfurt CD EUR 30,297 99.15 3,004,048 27,150 103.87 2,820,185
J.P. Morgan Chase Bank, New York CD USD 2,008,241 85.50 293,001,171 3,139,002 84.80 266,190,838
J.P. Morgan Chase Bank, Sydney CD AUD 39,818 61.37 2,443,542 60,073 64.50 3,874,664
Mashreq Bank, PSC, India CD USD 334,677 85.50 28,614,844 323,691 84.80 27,449,330
Masreq Bank PSC, New York CD USD 1,823,390 85.50 155,899,842 1,283,113 84.80 108,809,368
MCB Bank Ltd, Pakistan CD USD 115,393 85.50 9,866,119 149,715 84.80 12,696,015
Nations Trust Bank Ltd., Colombo CD USD - - - - - -
Nepal Bangladesh Bank Ltd., Nepal CD USD 227,696 85.50 19,467,990 198,346 84.80 16,819,930
Sonali Bank Limited, Kolkata CD USD 139,264 85.50 11,907,040 152,559 84.80 12,937,139
Standard Chartered Bank, New York CD USD 6,812,125 85.50 582,436,727 4,900,230 84.80 415,544,859
Standard Chartered Bank, Kolkata CD USD 109,398 85.50 9,353,508 645,508 84.80 54,739,795
Standard Chartered Bank, London CD GBP 334,079 114.80 38,351,138 140,208 114.49 16,053,022
Standard Chartered Bank, London CD USD 122,970 85.50 10,513,927 122,970 84.80 10,427,984
Standard Chartered Bank, Tokyo CD JPY 16,572,671 0.76 12,654,892 14,114,314 0.82 11,555,389
Wells Fargo Bank, New York CD USD 2,103,539 85.50 179,852,614 592,745 84.80 50,265,436
Total 36,550,886 1,854,513,708 30,191,685 1,383,521,546
61
Details of investment in shares Annexure-B
as at 30 September 2021 Amount in BDT
Mkt or NAV
Name of the Company Face value No. of share Cost/share Cost price Total value Gain/(loss)
price/share
Unquoted shares
Karma Sangsthan Bank 100 200,000 100.00 20,000,000 116.11 23,221,703 3,221,703
Central Depository Bangladesh Limited 10 2,284,722 10.00 22,847,220 34.69 79,250,463 56,403,243
42,847,220 102,472,166 59,624,946
Quoted shares
Under General/own Fund
Bangladesh Submarine Cable 10 50,000 187.04 9,351,870 218.50 10,925,000 1,573,130
Beximco Limited 10 8,265,000 65.23 539,131,594 137.20 1,133,958,000 594,826,406
Beximco Pharmaceuticals Limited 10 3,040,600 105.26 320,041,062 240.30 730,656,180 410,615,118
Brac Bank Limite 10 57,434 47.46 2,725,622 47.60 2,733,858 8,236
British American Tobacco Bangladesh Company Limited 10 15,000 463.26 6,948,852 651.00 9,765,000 2,816,148
Energypac Power Generation Limited 10 619,500 41.90 25,960,000 53.10 32,895,450 6,935,450
Fareast Life Insurance Limited 10 979,224 125.11 122,511,641 68.30 66,880,999 (55,630,641)
Grameenphone Limited 10 25,000 367.69 9,192,230 380.20 9,505,000 312,770
IDLC Finance Limited 10 520,000 77.86 40,487,941 73.10 38,012,000 (2,475,941)
LafargeHolcim Bangladesh Limited 10 75,000 79.24 5,943,233 92.40 6,930,000 986,768
National Housing Finance & Investment Limited 10 5,288,910 7.38 39,010,000 81.50 431,046,165 392,036,165
Power Grid Company Limited 10 200,000 69.13 13,825,061 63.10 12,620,000 (1,205,061)
Reliance Insurance Ltd. 10 70,000 106.30 7,440,958 96.10 6,727,000 (713,958)
Square Pharmaceuticals Limited 10 174,025 210.18 36,576,615 242.20 42,148,855 5,572,240
Summit Power Limited 10 208,545 49.92 10,411,536 47.70 9,947,597 (463,940)
TITAS Gas Transmission and Distribution Limited 10 1,665,760 76.60 127,592,706 44.10 73,460,016 (54,132,690)
Unique Hotel and Resorts Limited 10 200,000 105.15 21,029,385 62.80 12,560,000 (8,469,385)
Walton Hi-Tech Industries Limited 10 11,000 1,376.49 15,141,398 1,276.10 14,037,100 (1,104,298)
Total 1,353,321,702 2,644,808,220 1,291,486,518
Under Special Fund as per BB DOS Circular number 1, dated 10 February 2020
Beximco Pharmaceuticals Limited 10 7,371,650 106.05 781,737,625 240.30 1,771,407,495 989,669,870
Total 781,737,625 1,771,407,495 989,669,870
Mutual funds
IFIC Bank 1st Mutual Fund 10 37,951,655 6.59 250,000,000 9.75 370,009,660 120,009,660
st
ICB Employee 1 Mutual Fund 10 1,339,500 13.43 17,986,473 9.15 12,262,453 (5,724,020)
267,986,473 382,272,113 114,285,641
62
Foreign Investment: In associate/joint venture
Nepal Bangladesh Bank Limited 36,827,426 66.51 2,449,235,383 334.65 12,324,312,695 9,875,077,312
Oman Exchange LLC 627,841 139.75 87,738,845 254.43 159,741,427 72,002,582
2,536,974,228 12,484,054,122 9,947,079,894
Other foreign Investment: MCB Bank Limited, Pakistan 175,508 2,069.25 363,170,724 75.40 13,233,330 (349,937,394)
Total foreign investment 2,900,144,952 12,497,287,452 9,597,142,500
Total 5,346,037,972 17,398,247,446 12,052,209,474
Required provision for investment in shares Amount in BDT

Particulars Cost price Market value Req. Provision
Unquoted shares 1 42,847,220 102,472,166 -
2
Quoted- own/general Fund 1,353,321,702 2,644,808,220 -
2
Quoted- under special fund 781,737,625 1,771,407,495 -
3
Mutual funds 267,986,473 382,272,113 5,724,020
Sub-total 2,445,893,020 4,900,959,994 5,724,020
Foreign Investment: In associate/joint venture 2,536,974,228 12,484,054,122 -

Other foreign investment-MCB Bank Ltd. 363,170,724 13,233,330 349,937,394
Grand Total 5,346,037,972 17,398,247,446 355,661,414
1
Provision is kept against unrealized loss for investment in unquoted shares.
2
Provision against quoted- own/general Fund has been made following DOS circular no. 4 dated 24 November 2011
3
Provision against Mutul Fund made in line with the directives contained in Bangladesh Bank DOS Circular number 03 and 10 dated 12 March and 28 June 2015 respectively.
Calculation as under:
Higher of C (NAVx85%) Required
Name of the Company No. of share Cost/Share NAV/share NAV x 85% MV/share
&D - CP Provision
A B C D E F=(E-B) G=(A x F)
st
IFIC Bank 1 MF 37,951,655 6.59 11.47 9.75 6.20 9.75 - -
st
ICB EP 1 MF 1,339,500 13.43 10.77 9.15 7.70 9.15 (4.27) (5,724,020)
Total provision required (5,724,020)
63
Annexure-C
Loans and advances allowed to each customer exceeding 10% of Bank's total capital
BDT in million
Name of the Outstanding as on 30 September 2021 Amount
Sl. Name of clients
group Funded Non-funded Total classified
1 Uttara Uttara Traders(Pvt.) Ltd. 4,355.30 5,006.10 9,361.40 -
Sub Total: 4,355.30 5,006.10 9,361.40 -
Silver Composite Textile Mills Ltd. 2,615.91 1,519.60 4,135.51 -
2 Silver Line
Silver Line Composite Textile Mill Ltd. 2,005.50 1,479.80 3,485.30 -
- 5.00 5.00 -
Sub Total: 4,621.41 3,004.40 7,625.81 -
Agricultural Marketing Ltd. 68.23 - 68.23 -
Banga Building Materials Ltd. 104.53 735.10 839.63 -
Banga Millers Ltd. 15.40 - 15.40 -
3 Pran Group
Durable Plastic Ltd. 190.00 248.70 438.70 -
Pran Dairy Ltd. 280.00 2,873.10 3,153.10 -
RFL Plastics Ltd. 28.80 1,800.30 1,829.10 -
Sub Total: 686.96 5,657.20 6,344.16 -
Nassa Properties Ltd. 3,848.00 - 3,848.00 -
4 Nassa Nassa Spinners & Garments 755.10 601.20 1,356.30 -
Nassa Supreme Wash Ltd. 426.20 19.40 445.60 -
Sub Total: 5,029.30 620.60 5,649.90 -
Dohatec Newmedia Ltd. 1,714.22 42.60 1,756.82 -
5 Doha-Global
Global Voice Telecom Ltd. 2,479.48 1,351.30 3,830.78 -
Sub Total: 4,193.70 1,393.90 5,587.60 -
6 Habib Hotel Habib Hotel International Ltd. 5,453.96 - 5,453.96 -
Sub Total: 5,453.96 - 5,453.96 -
Knit Concern Ltd. 1,096.20 2,537.20 3,633.40 -
KC Apparels Ltd. 54.30 152.90 207.20
Pack Concern Ltd. 42.30 15.30 57.60 -
KC Lingerie Ltd. 744.70 599.10 1,343.80 -
7 Knit Concern
Zas Concern Ltd. 6.00 8.10 14.10 -
JMJ Mollah Cold Storage Ltd. 36.47 - 36.47 -
Surecell Medical (BD) Ltd. 11.51 - 11.51 -
KC Spinning Mills Ltd. - 38.90 38.90 -
Sub Total: 1,991.48 3,351.50 5,342.98 -
SQ Celsius Ltd. 2,326.89 310.40 2,637.29 -
8 SQ
SQ Birichina Ltd. 1,551.60 942.10 2,493.70
Sub Total: 3,878.49 1,252.50 5,130.99 -
9 Uttara Jute Uttara Jute Fibres & Industries Ltd. 4,801.54 314.60 5,116.14 -
Sub Total: 4,801.54 314.60 5,116.14 -
Ena Properties Ltd. 2,073.03 28.20 2,101.23 -
Northern Power Solutions Ltd. 2,012.16 111.00 2,123.16 -
10 ENA
Ena Building Products Ltd. 303.00 - 303.00 -
Sakoatex Ltd. 504.31 11.00 515.31
Sub Total: 4,892.50 150.20 5,042.70 -
Uttara Acrylic Mills Ltd. 100.12 20.90 121.02 -
Uttara Spinning Mills Ltd. 2,365.53 873.20 3,238.73 -
11 Uttara Six Seasons Food and Beverage Ltd. - 5.10 5.10 -
Six Seasons Traders - 1,234.50 1,234.50 -
Uttara Rotors Yarn Mills Ltd. 194.10 15.20 209.30 -
Sub Total: 2,659.75 2,148.90 4,808.65 -
Islam Garments Ltd. 2,497.40 2,017.00 4,514.40 -
12 Islam
64
Name of the Outstanding as on 30 September 2021 Amount
Sl. Name of clients
group Funded Non-funded Total classified
12 Islam Islam Knit Designs Ltd. 129.20 84.20 213.40 -
Euro Jeans Ltd. 43.80 - 43.80 -
Sub Total: 2,670.40 2,101.20 4,771.60 -
13 Northstone Construction & Engineering Ltd. 4,716.73 - 4,716.73 -
Sub Total: 4,716.73 - 4,716.73 -
14 Absolute Construction & Engineering Ltd. 4,705.10 - 4,705.10 -
Sub Total: 4,705.10 - 4,705.10 -
15 Global LPG Ltd. 4,648.14 - 4,648.14 -
Sub Total: 4,648.14 - 4,648.14 -
16 Teambuild Teambuild Construction & Engineering Ltd. 4,628.43 - 4,628.43 -
Sub Total: 4,628.43 - 4,628.43 -
17 Serve Construction & Engineering Ltd. 4,627.60 - 4,627.60 -
Sub Total: 4,627.60 - 4,627.60 -
18 Sristi Real Estate Ltd. 4,627.49 - 4,627.49 -
Sub Total: 4,627.49 - 4,627.49 -
Navana Ltd. 548.28 701.10 1,249.38 -
Navana Real Estate Ltd. 2,931.00 - 2,931.00 -
19 Navana
Navana Interlinks Ltd. 146.69 60.70 207.39 -
Navana Electronics Ltd. 110.99 8.40 119.39 -
Sub Total: 3,736.97 770.20 4,507.17 -
20 Central Land & Buildings Ltd. 4,386.39 - 4,386.39 -
Sub Total: 4,386.39 - 4,386.39 -
Powerpac Mutiara Keraniganj Ltd. 2,230.91 - 2,230.91 -
21 Sikder
R & R Holdings Ltd. 2,113.95 - 2,113.95 -
Sub Total: 4,344.86 - 4,344.86 -
22 Quick Real Estate Ltd. 4,279.12 - 4,279.12 -
Sub Total: 4,279.12 - 4,279.12 -
23 Raj Housing Ltd. 4,211.23 - 4,211.23 -
Sub Total: 4,211.23 - 4,211.23 -
24 Wisdom Attires Ltd. 3,917.30 285.40 4,202.70 -
Sub Total: 3,917.30 285.40 4,202.70 -
25 Phonix Appollo Ispat Complex Ltd. 4,039.10 118.60 4,157.70 -
Sub Total: 4,039.10 118.60 4,157.70 -
26 Vestel Cable TV Networks 3,931.40 - 3,931.40 -
Sub Total: 3,931.40 - 3,931.40 -
27 Crystal Construction Ltd. 3,909.94 - 3,909.94 -
Sub Total: 3,909.94 - 3,909.94 -
Grand Total: 109,944.60 26,175.30 136,119.90 -
65
Schedule of fixed assets including premises, furniture and fixture Annexure - D
Cost Depreciation/Amortization
Written down
Disposal Disposal Balance as at
Particulars Balance as at 1 Addition during Transfer from Balance as at 30 Balance as at 1 Charged value as at 30
during the during the 30 September
January 2021 the year CWIP September 2021 January 2021 during the year September 2021
year year 2021
Land 2,423,609,559 - - - 2,423,609,559 - - - - 2,423,609,559
Buildings and premises 1,902,617,204 - - - 1,902,617,204 422,008,536 35,187,516 - 457,196,052 1,445,421,152
Right of Use Assets 1,938,582,527 - - - 1,938,582,527 584,125,725 313,563,363 - 897,689,087 1,040,893,440
Wooden furniture 287,581,539 36,654,184 - 2,434,147 321,801,576 147,092,121 18,668,196 2,185,399 163,574,918 158,226,658
Steel furniture 111,193,993 22,991,147 - 872,709 133,312,431 49,804,274 4,736,349 596,276 53,944,347 79,368,084
Computer equipment 1,049,746,984 88,888,743 29,031,300 18,527,473 1,149,139,554 743,955,942 71,860,492 18,342,716 797,473,718 351,665,836
Electrical & gas equipment 1,085,482,116 187,431,781 29,825,582 31,079,261 1,271,660,218 562,544,470 90,828,356 30,225,765 623,147,061 648,513,157
Office equipment 290,404,959 57,598,524 - 3,285,648 344,717,835 219,524,399 19,734,325 3,285,597 235,973,127 108,744,708
Leasehold improvement 508,637,207 140,547,443 43,274,460 13,306,215 679,152,895 208,944,409 35,767,046 10,912,201 233,799,255 445,353,640
Vehicles 212,708,501 - - 4,355,027 208,353,474 171,833,744 12,400,478 4,355,022 179,879,201 28,474,273
Soft furnishing 12,960,055 490,589 - 330,725 13,119,919 11,745,436 617,410 325,463 12,037,382 1,082,537
Software 1,107,209,905 8,500,942 2,413,320 13,000 1,118,111,167 402,183,786 67,917,254 12,999 470,088,041 648,023,126
10,930,734,549 543,103,352 104,544,662 74,204,204 11,504,178,359 3,523,762,842 671,280,784 70,241,437 4,124,802,189 7,379,376,170
Capital work in progress * 88,200,413 187,695,625 (104,544,662) 171,351,376 - - - - 171,351,376
Total 11,018,934,962 730,798,977 - 74,204,204 11,675,529,735 3,523,762,842 671,280,784 70,241,437 4,124,802,189 7,550,727,546
* Capital work in progress represents the amount paid for EKYC Solution, Computers, Router and Fusion Banking Essence.
Cost Depreciation/Amortization
Written down
Particulars Disposal Disposal Balance as at value as at 31
Balance as at 1 Addition during Transfer from Balance as at 31 Balance as at 1 Charged
during the during the 31 December December 2020
January 2020 the year CWIP December 2020 January 2020 during the year
year year 2020
Land 2,423,609,559 - - - 2,423,609,559 - - - - 2,423,609,559
Buildings and premises 1,902,617,204 - - - 1,902,617,204 374,834,064 47,174,472 - 422,008,536 1,480,608,668
Right of Use Assets 951,944,753 1,045,628,181 - 58,990,406 1,938,582,527 134,709,167 454,886,479 5,469,921 584,125,725 1,354,456,803
Wooden furniture 254,570,346 38,998,932 - 5,987,739 287,581,539 131,702,993 21,075,551 5,686,424 147,092,121 140,489,418
Steel furniture 77,057,552 25,087,869 10,125,000 1,076,428 111,193,993 46,253,874 4,127,431 577,031 49,804,274 61,389,719
Computer equipment 863,236,002 77,513,866 117,214,225 8,217,109 1,049,746,984 680,401,945 71,735,012 8,181,015 743,955,942 305,791,043
Electrical & gas equipment 902,371,888 197,864,907 - 14,754,679 1,085,482,116 483,273,963 93,429,031 14,158,524 562,544,470 522,937,646
Office equipment 242,661,330 51,323,052 - 3,579,423 290,404,959 204,996,742 18,099,158 3,571,502 219,524,399 70,880,560
Leasehold improvement 329,274,712 173,277,081 17,061,674 10,976,260 508,637,207 186,421,607 30,567,987 8,045,185 208,944,409 299,692,798
Vehicles 147,985,565 17,122,936 - - 165,108,501 115,581,655 11,833,728 - 127,415,383 37,693,118
Leased vehicles 47,600,000 - - 47,600,000 35,598,988 8,819,373 - 44,418,361 3,181,639
Soft furnishing 12,646,335 802,092 - 488,372 12,960,055 11,438,534 795,240 488,338 11,745,436 1,214,619
Software 693,375,354 33,888,255 380,261,630 315,333 1,107,209,905 339,695,937 62,803,177 315,327 402,183,786 705,026,119
8,848,950,600 1,661,507,171 524,662,529 104,385,750 10,930,734,550 2,744,909,469 825,346,640 46,493,267 3,523,762,842 7,406,971,708
Capital work in progress * 297,219,437 315,643,505 (524,662,529) - 88,200,413 - - - - 88,200,413
Total 9,146,170,037 1,977,150,676 - 104,385,750 11,018,934,962 2,744,909,469 825,346,640 46,493,267 3,523,762,842 7,495,172,120
* Capital work in progress represents the amount paid for Disaster Recovery Centre, Iron safe, EKYC Solution and Fusion Banking Essence.
66
Computation of Risk Weighted Assets Annexure -E
Solo Basis
1.0 Risk Weighted Assets for Credit Risk Balance Sheet Exposures BDT in Million
Sl. Exposure Type Rating Risk Weight Exposure RWA
1 2 3 4 5 6 = (4x5)
a. Cash 0 5,418.15 -
Claims on Bangladesh Government (other than
b. 0 -
PSEs) and Bangladesh Bank 62,597.67
c. Claims on other Sovereigns & Central Banks 0.5 - -
Claims on Bank for International Settlements,
d. International Monetary Fund and European Central 0 - -
Bank
e.
Claims on Multilateral Development Banks (MDBs): -
i) IBRD, IFC, ADB, EBRD, IADB, EIB, EIF, NIB,

0 - -
CDB, IDB, CEDB
ii) Others MDBs 1 0.20 - -
2,3 0.50 - -
4,5 1.00 - -
6 1.50 - -
Unrated 0.50 - -
f. Claims on Public Sector Entities (other than 1 0.20 - -
Government) in Bangladesh 2,3 0.50 - -
4,5 1.00 - -
6 1.50 - -
Unrated 0.50 20.00 10.00
g. Claims on Banks and NBFIs -
i) Maturity over 3 months 1 0.20 395.53 79.11
2,3 0.50 63.36 31.68
4,5 1.00 3.43 3.43
6 1.50 - -
Unrated 1.00 51.10 51.10
ii) Maturity less than 3 months 0.20 11,732.66 2,346.53
h. Claims on Corporate (excluding equity exposure) 1 0.20 13,929.24 2,785.85
2 0.50 24,262.32 12,131.16
3,4 1.00 82,716.41 82,716.41
5,6 1.50 - -
Unrated 1.25 20,086.44 25,108.05
h(1) Claims on SME SME 1 0.20 199.52 39.90
SME 2 0.40 277.98 111.19
SME 3 0.60 2,080.81 1,248.48
SME 4 0.80 1,188.89 951.11
SME 5 1.20 - -
SME 6 1.50 - -
Unrated (small enterprise &
0.75 1,586.36
<BDT 3m) 2,115.14
Unrated (small enterprise
having ≥ BDT 3m&Medium 1.00 10,694.65 10,694.65
enterprise)
67
Sl. Exposure Type Rating Risk Weight Exposure RWA
i. Claims under Credit Risk Mitigation PSE - -
Banks & NBFIs - -
Corporate 6,001.30 3,340.87
Retail 444.33 23.69
SME 684.52 58.20
Consumer finance 1,523.51 138.55
Residential property 46.32 13.91
Commercial real estate 73.35 71.35
Claims categorized as retail portfolio (excluding SME, Consumer Finance and Staff
j. 0.75 1,337.80 1,003.35
loan) up to 1 crore
k. Consumer finance 1.00 1,943.85 1,943.85
l. Claims fully secured by residential property 0.50 68,673.12 34,336.56
m. Claims fully secured by Commercial real estate 1.00 37,331.00 37,331.00
1. Past Due Claims that is past due for 60 days or more (Risk weights are to be
n.
assigned net of specific provision):
-
i) Where specific provisions are less than 20 percent of the outstanding amount of
1.50 6,499.09 9,748.64
the past due claim
ii) Where specific provisions are no less than 20 percent of the outstanding amount
1.00 1,896.56 1,896.56
of the past due claim
iii) Where specific provisions are more than 50 percent of the outstanding amount of
0.50 398.94 199.47
the past due claim
2. Claims fully secured against residential property that are past due for more than
60 days and/or impaired and specific provision held there-against is less than 20% 1.00 741.38 741.38
of outstanding amount
3. Loans and claims fully secured against residential property that are past due for
more than 60 days and/or impaired and specific provision held there-against is no 0.75 42.24 31.68
less than 20% of outstanding amount
o. Capital Market Exposure 1.25 - -
Investment in equity and other regulatory capital instruments issued by other banks
p. and merchant Banks/Brokerage Houses/Exchange Houses which are not listed in 1.25 110.59 138.23
the Stock Exchanges (other than those deducted from capital) held in banking book
q. Investments in venture capital 1.50 - -

r. Investments in premises, plant and equipment and all other fixed assets 1.00 7,550.73 7,550.73
s. Claims on all fixed assets under operating lease 1.00 170.95 170.95
t. All other assets - -
i) Claims on GoB & BB 0.00 9,271.60 -
ii) Staff loan/Investment 0.20 1,100.63 220.13
iii) Cash items in Process of Collection 0.20 - -
iv) Claims on Off-shore Banking Units (OBU) 1.00 2,114.76 2,114.76
v) Other assets (net off specific provision, if any) 1.00 6,937.33 6,937.33
Sub-Total 392,727.19 247,906.19
68
2.0 Risk Weighted Amount for Credit Risk Off-Balance Sheet Exposures BDT in Million
Sl. Exposure Type BB's Rating Grade* Risk Weight Exposure RWA
No.
1 2 3 4 5 6 = (4x5)
a) Claims on Bangladesh Government and
Bangladesh Bank 0
b) Claims on other Sovereigns & Central Banks*

c) Claims on Bank for International Settlements,
International Monetary Fund and European Central
0
Bank
d) Claims on Multilateral Development Banks (MDBs):
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF,

NIB, CDB, IDB, CEDB 0
ii) Others MDBs 1 0.20

2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
e) Claims on Public Sector Entities (other than 1 0.20
Government) in Bangladesh 2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
f) Claims on Banks & NBFIs
i) Maturity over 3 months 1 0.20
2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
ii) Maturity less than 3 months 0.20
g) Claims on Corporate (excluding equity exposure) 1 0.20 8,204.86 1,640.97
2 0.50 10,100.14 5,050.07
3,4 1.00 8,060.54 8,060.54
5,6 1.50 - -
Unrated 1.25 5,725.13 7,156.41
h) Claims under retail exposure 0.75 2.11 1.58
h(1) 1 0.20 0.52 0.10
2 0.40 21.80 8.72
3 0.60 482.15 289.29
4 0.80 330.34 264.28
5 1.20 - -
Claims under SME Credit Rating-wise exposure 6 1.50 - -
Unrated (small enterprise &
0.75 62.09 46.57
<BDT 3.00m)
Unrated (small enterprise 1.00
having ≥ BDT 3.00m & 1,115.90 1,115.90
Medium enterprise)
i) Consumer Loan 1.00
j) Claims fully secured by residential property 0.50
k.) Claims fully secured by commercial real estate 1.00
l) Investments in venture capital 1.50
m) All other assets 1.00
Sub-Total 34,105.58 23,634.43
69
3.0 Capital Charge for Market Risk (Balance Sheet Exposures) BDT in Million
Sl. Capital
Market Risk Risk Weight RWA
No. Charge
a Interest Rate Related Instruments 16.96 10.00 169.46
b Equities 959.70 10.00 9,596.98
c Foreign Exchange Position 101.26 10.00 1,012.64
d Commodities - - -
Sub-Total 1,077.92 10,779.17
4.0 Capital Charge for Operational Risk (Basic Indicator Approach)

Sl. Capital
Operational Risk Risk Weight RWA
No. Charge
a Gross Income 1,191.44 10.00 11,914.37

Sub-Total 1,191.44 10.00 11,914.37
Grand Total Risk Weighted Assets 294,234.17
70
Related party disclosures Annexure -F
Name of Directors and their interest in different entities
Sl Status with the Status with interested
Name Name of the firms/companies in which they have interest
No. Bank entities
1 Mr. Salman F Rahman Chairman Chairman Bangladesh Enterprise Institute
Chairman Abahani Limited
Vice Chairman Bangladesh Export Import Co. Ltd.
Vice Chairman Beximco Pharmaceuticals Ltd.
Vice Chairman Beximco Synthetics Ltd.
Vice Chairman Shinepukur Ceramics Ltd.
Vice Chairman Independent Television Ltd.
Vice Chairman Beximco Holdings Ltd.
Vice Chairman Beximco Computers Ltd.
Vice Chairman Beximco Pharma Center for Bio & Industrial Research Ltd.
Vice Chairman Beximco Property Development and Management Ltd.
Vice Chairman Sonali Ansh Limited
Vice Chairman Esses Exporters Ltd.
Shareholder Beximco Power Company Ltd.
Shareholder Beximco Engineering Ltd.
Shareholder I & I Services Ltd.
2 Mr. Ahmed Shayan Fazlur Rahman Vice-Chairman Chairman Beximco Communications Limited
Chairman Escorp LPG Limited
Chairman Beximco Petroleum Limited
Chairman Escorp Cylinders Limited
Chairman
Beximco LPG Unit-1 Limited
(Nominee Director)
Chairman
Beximco LPG Unit-2 Limited
(Nominee Director)
Chairman
Giga Tech Limited
(Nominee Director)
Managing Director
Beximco Power Company Limited
(Nominee Director)
Managing Director
(Nominee Director)
Escorp Holdings Limited
Managing Director
(Nominee Director)
OK Company Limited
Managing Director Eses Holdings Limited
Shareholder Crescent Fashion and Design Limited
Shareholder SFR Estates Limited
3 Mr. Anwaruzzaman Chowdhury Independent Director
(Nominated by IFIC Bank)
IFIC Money Transfer (UK) Limited
(Upto 17 July 2021) Director
Alternate Director
Oman Exchange LLC
Chairman Kipling
4 Ms. Rabeya Jamali Independent Director
IFIC Investment Limited
Director
Director
Alternate Director
Nepal Bangladesh Bank Limited, Nepal
Partner Jamali & Morshed
Independent Director Confidence Cement Limited
5 Mr. Sudhangshu Shekhar Biswas Independent Director
IFIC Securities Limited
(Since 18 July 2021) Director
Director
Alternate Director
Oman Exchange LLC
71
Sl Status with the Status with interested
Name Name of the firms/companies in which they have interest
No. Bank entities
6 Mr. A. R. M. Nazmus Sakib Govt. nominated Chairman Nepal Bangladesh Bank Limited, Nepal
Director (Nominated by IFIC Bank)
Chairman
Director Oman Exchange LLC

Director
(Nominated by IFIC Bank) IFIC Investment Limited
7 Ms. Quamrun Naher Ahmed Govt. nominated Chairman
IFIC Securities Limited
Director
Director
Director
(Nominated by IFIC Bank) Nepal Bangladesh Bank Limited, Nepal
Director
(Nominated by IFIC Bank) Beximco Pharmaceuticals Ltd.
Member
(Nominated by Govt. of National River Conservation Commission
Bangladesh)
8 Mr. Md. Zafar Iqbal, ndc Govt. nominated Chairman
IFIC Investment Limited
Director
Director
Alternate Director
Oman Exchange LLC
Additional Secretary
Ministry of Public Administration, Bangladesh Secretariat
(On PRL)
9 Mr. Mohammad Shah Alam Sarwar Managing Director Director
Nepal Bangladesh Bank Limited, Nepal
Director
Oman Exchange LLC
Director
Director IFIC Securities Limited

Related party transactions

i) Significant contracts with the Bank wherein Directors have interest during the year is nil.
ii) Share issued to Directors and Executive without consideration or exercisable at a discount is nil.
iii) The details of the related party transactions are as follows:
72
Amount in BDT
As at and for the year ended
Nature of Transaction
1) Name of the Party : IFIC Securities Limited
Relationship with the company : Subsidiary
A. Capital investment 2,199,994,000 2,199,994,000
B. Current & SND Account 910,341,299 82,462,094
C. BO account balance 801,495,863 829,312,122
D. Loan 2,789,253,758 2,860,263,433
2) Name of the Party : IFIC Money Transfer (UK) Limited

A. Capital investment 34,438,980 34,348,260
3) Name of the Party : IFIC Investment Limited

A. Capital investment 399,994,000 -
B. Current & SND Account 222,194,110 -
4) Name of the Party : Oman Exchange LLC

Relationship with the company : Associate
A. Capital investment 87,738,845 87,021,644
5) Name of the Party : Nepal Bangladesh Bank Limited
Relationship with the company : Associate
A. Capital investment 2,449,235,383 2,432,766,863
B. Borrowing - 508,806,600
iv) Lending facility of Director and their related concern:
Loan
Relation with
Name of the Borrower Related Director Relation with the Bank Type & Date of Investment at Cost
Borrower
expiry
Mr. Salman F Guarantee
Beximco Computers Limited Chairman Director 563,000
Rahman (19.01.22)
Mr. Ahmed
Guarantee
Giga Tech Limited Shayan Fazlur Vice Chairman Chairman 1,880,000
(31.12.21)
Rahman
In case of approval of Loan to related parties, the Bank follows the BRPD circular no. 04 dated 23 February 2014 and requirement of section 27(1) of the
Banking Companies Act 1991 as amended.
v) Business other than banking business with any related concern of the Directors as per section 18(2) of Bank Companies Act 1991:
Bank has executed maintenance agreement with Beximco Computers Limited for maintenance of Nostro Reconciliation Software with a fees of BDT
50,000 per year, Bangladesh Bank Taka Account Reconciliation software with a fees of BDT 50,000 per year and Bangladesh Bank Foreign Exchange
Return software with a fee of BDT 95,000 per month and also an agreement with Giga Tech Limited for implementation of EKYC Solution with a fees of
BDT 29,895,000. Bank has also a service agreement with Bangladesh Export Import Co. Limited for Broadband Internet Service with a fees of BDT
60,000 per month. Bank also paid BDT 8,657,340 to Independent Television Ltd. for the period ended 30 September 2021.
vi) Investment in the securities of Director and their related concern:
Relation with the Relation with
Investee Entity Related Director Investment at Cost
Bank Investee Entity
Beximco Pharmaceuticals Limited Mr. Salman F Rahman Chairman Vice Chairman 1,101,778,687
Beximco Limited Mr. Salman F Rahman Chairman Vice Chairman 539,131,594
73
Disclosure on Audit Committee of the Bank Annexure -G
a) Particulars of members of the Audit Committee
Sl. Name Status with the Bank Status Educational Qualification
L.L.B. (Hons), L.L.M. in Banking and

1 Ms. Rabeya Jamali Independent Director Chairman
Financial Law
Mr. Anwaruzzaman Chowdhury
2 Independent Director Member MBA
(Upto 17 July 2021)
Mr. Sudhangshu Shekhar Biswas (Since
3 Independent Director Member BA (Hons), MA (Economics)
18 July 2021)
B. Com (Hons), M. Com (Accounting),
4 Mr. Md. Zafar Iqbal, ndc Director Member
MBA, Masters in Economics
* Mr. Sudhangshu Shekhar Biswas has been appointed as Independent Director for the 1st term w.e.f. 18 July 2021 in place of Mr. Anwaruzzaman
Chowdhury who has completed his 2nd term as Independent Director on 17 July 2021 .
b) Particulars of meetings held by the Audit Committee during the period from 01 January to 30 September 2021
Sl. Meeting No Meeting held on
th
1 157 Audit Committee Meeting 21.01.2021
2 158th Audit Committee Meeting 28.01.2021
5 160th Adjourned Audit Committee Meeting 03.03.2021
6 161st Audit Committee Meeting 21.03.2021
7 162nd Audit Committee Meeting 31.03.2021
8 163rd Audit Committee Meeting 11.04.2021
16 171st Audit Committee Meeting 11.08.2021
17 172nd Audit Committee Meeting 31.08.2021
18 173rd Audit Committee Meeting 19.09.2021
Evaluation of the Audit Committee regarding strengthening of Internal Control System

The Internal Control & Compliance Division (ICCD) of the Bank reviews the Internal Control System of the Bank and ensures that the
internal controls are being properly managed and supervised throughout all Divisions, Branches and Uposhakhas of the Bank.
As per guideline of Bangladesh Bank, the Audit Committee, in the meetings held during the period ended 30 September 2021,
reviewed and evaluated various issues/reports/findings on financial reporting process, the system of internal control, the audit process
and the process for monitoring compliance with laws and regulations and its own code of business conduct submitted by ICCD.
During the discussion on some memo(s) and Compliance Report, the Committee has advised the Management to devise a system for
arresting occurrence of the irregularities on a recurring basis and ICCD of the Bank has also been advised to take necessary steps for
rectification of all irregularities as mentioned in the memo(s)/reports at the earliest. The committee has also advised the Head of ICC
to formulate a matrix/format to monitor status of compliance on a regular basis and devise some innovative tools/system for reducing
number of irregularities in the Branches/Uposhakhas as well as enabling them to monitor up-to-date status of compliance.
All audited/Un-audited yearly/quarterly Financial Statements submitted during the period ended 30 September 2021 have been
explained and endorsed to the Audit Committee whether the statements reflect the complete and concrete information, and whether
the statements are prepared according to the existing rules & regulations and standards enforced in the country and as per relevant
prescribed accounting standards set by Bangladesh Bank and Bangladesh Securities and Exchange Commission.
The Committee has submitted compliance reports to the Board on a quarterly basis during the period ended 30 September 2021
regarding compliance with recommendations made in internal and external audit reports and the Bangladesh Bank inspection reports.
74
Segment Reporting Annexure - H
The Bank reports its operations under geographical location and business segment as per IFRS:8 Operating Segment
Profit and Loss Account for the year ended 30 September 2021
Amount in BDT
IFIC Bank Limited Subsidiaries Associates
Inside Bangladesh IFIC Money Nepal Oman
Particulars IFIC Securities IFIC Investment Adjustment Consolidated
Conventional Off- Shore Adjustment Total Transfer (UK) Bangladesh Bank Exchange
Limited Limited
Banking Banking Unit Limited Limited LLC
Interest income 16,094,462,461 81,214,039 - 16,175,676,500 356,016,769 - - - - (182,478,966) 16,349,214,303
Interest paid on deposits and borrowings, etc. 11,612,588,608 53,505,098 (53,505,098) 11,612,588,608 185,550,966 - - - - (186,561,220) 11,611,578,354
Net interest income 4,481,873,853 27,708,941 (53,505,098) 4,563,087,892 170,465,803 - - - - 4,082,254 4,737,635,949
Investment income 3,112,822,211 - - 3,112,822,211 39,955,673 28,873,917 - - - - 3,181,651,801

Commission, exchange and brokerage 1,750,552,649 2,165,537 - 1,752,718,186 69,377,292 - 19,684,465 (16,468,520) (717,201) (3,072,000) 1,821,522,222
Other operating income 125,312,441 235,368 - 125,547,809 2,676,114 - 1,328,680 - - (95,330) 129,457,273
4,988,687,301 2,400,905 - 4,991,088,206 112,009,079 28,873,917 21,013,144 (16,468,520) (717,201) (3,167,330) 5,132,631,296
Total operating income 9,470,561,154 30,109,846 (53,505,098) 9,554,176,098 282,474,882 28,873,917 21,013,144 (16,468,520) (717,201) 914,925 9,870,267,245
Salary and allowances 2,091,063,320 - - 2,091,063,320 8,482,494 1,762,690 8,255,965 - - - 2,109,564,468
Rent, taxes, insurance, electricity, etc. 478,264,396 - - 478,264,396 441,095 2,116,941 - - - 480,822,432
Legal expenses 10,219,772 - - 10,219,772 - 1,620,667 - - - 11,840,440
Postage, stamps, telecommunication, etc. 76,819,902 - - 76,819,902 315,748 109,070 - - - 77,244,720
Stationery, printing, advertisement, etc. 277,079,069 - - 277,079,069 236,257 600 71,852 - - - 277,387,778
Managing Director's salary 18,870,250 - - 18,870,250 - - - - - 18,870,250
Directors' fees 1,832,000 - - 1,832,000 862,400 572,000 - - - - 3,266,400
Auditors' fees 2,970,835 - - 2,970,835 - 38,333 - - - - 3,009,168
Depreciation and repairs of Bank's assets 884,313,797 - - 884,313,797 6,266,157 194,446 1,952,925 - - - 892,727,326
Other expenses 792,814,586 - - 792,814,586 12,110,395 10,464,522 12,161,229 - 827,550,732
Total operating expenses 4,634,247,928 - - 4,634,247,928 28,714,546 13,032,591 26,288,650 - - - 4,702,283,714
Operating profit 4,836,313,226 30,109,846 (53,505,098) 4,919,928,170 253,760,336 15,841,327 (5,275,505) (16,468,520) (717,201) 914,925 5,167,983,532
Share of profit of joint ventures/associates - - - - - - 331,930,681 16,881,588 - 348,812,269
Profit before provision 4,836,313,226 30,109,846 (53,505,098) 4,919,928,170 253,760,336 (5,275,505) 315,462,161 16,164,387 914,925 5,516,795,801
Provision against loans and advances 1,477,740,648 - - 1,477,740,648 - - - - - 1,477,740,648
Provision for diminution in value of investments 1,185,653 - - 1,185,653 - - - - - - 1,185,653
Provisions for other assets 16,686,622 - - 16,686,622 - - - - - 16,686,622
Total provision 1,495,612,923 - - 1,495,612,923 - - - - - 1,495,612,923
Profit before taxation 3,340,700,303 30,109,846 (53,505,098) 3,424,315,247 253,760,336 (5,275,505) 315,462,161 16,164,387 914,925 4,021,182,878
Provision for taxation -
Current tax 1,888,550,000 - - 1,888,550,000 68,574,069 2,887,392 - - - - 1,960,011,461
Deferred tax (77,185,421) - - (77,185,421) (706,850) - - - - (77,892,270)
1,811,364,579 - - 1,811,364,579 67,867,219 - 1,882,119,190
Net profit after taxation 1,529,335,724 30,109,846 (53,505,098) 1,612,950,668 185,893,118 (5,275,505) 315,462,161 16,164,387 914,925 2,139,063,687
- - - -
75
The Bank reports its operations under geographical location and business segment as per IFRS:8 Operating Segment
Balance Sheet as at 30 September 2021
Amount in BDT
IFIC Bank Limited Subsidiaries Associates
Inside Bangladesh Nepal Oman IFIC Bank & it's
Particulars IFIC Securities IFIC Investment IFIC Exchange Adjustment
Conventional Off- Shore Adjustment Total Bangladesh Bank Exchange subsidiaries
Limited Limited (UK) Ltd.
Banking Banking Unit Limited LLC
PROPERTY AND ASSETS
Cash 21,099,640,630 - - 21,099,640,630 36,527 - 185,167 - - - 21,099,862,324
Balance with other banks and financial institute 6,773,566,850 283,612,525 (283,612,525) 6,773,566,850 910,341,299 - 15,390,201 - - (1,711,837,162) 5,987,461,188
Money at call and on short notice 4,300,000,000 - - 4,300,000,000 - - - - - - 4,300,000,000
Investments 57,320,149,515 - - 57,320,149,515 3,156,126,788 194,112,475 - - - 2,545,802,683 63,216,191,460
Loans and advances 290,556,669,417 2,114,756,409 - 292,671,425,826 3,960,747,039 - - - - (2,789,253,758) 293,842,919,107
Fixed assets 7,550,727,546 - - 7,550,727,546 45,168,599 - 667,657 - - - 7,596,563,802
Other assets 15,189,899,176 4,622,095 - 15,194,521,271 479,068,414 - 10,297,366 - - (2,634,426,980) 13,049,460,071
Non-banking assets 148,474,800 - - 148,474,800 - - - - - - 148,474,800
Total Assets 402,939,127,934 2,402,991,029 (283,612,525) 405,058,506,438 8,551,488,666 194,112,475 26,540,391 - - (4,589,715,217) 409,240,932,753

Borrowings from other banks, financial institutions and14,913,336,063
agents 2,368,585,980 (2,368,585,980) 14,913,336,063 2,789,253,758 - - - - (2,789,253,758) 14,913,336,063
Subordinated debt 6,400,000,000 - - 6,400,000,000 - - - - - - 6,400,000,000
Deposits and other accounts 326,736,265,433 - - 326,736,265,433 899,333,887 - - - - (1,934,442,714) 325,701,156,606
Other Liabilities 30,238,732,488 4,295,205 - 30,243,027,693 2,104,454,291 2,950,877 14,974,293 - - - 32,365,407,155
Total Liabilities 378,288,333,984 2,372,881,185 (2,368,585,980) 378,292,629,189 5,793,041,936 2,950,877 14,974,293 - - (4,723,696,472) 379,379,899,825
Capital/Shareholders' equity
Paid up capital 17,008,675,610 - - 17,008,675,610 2,200,000,000 - 34,438,969 - - (2,234,438,969) 17,008,675,610
Statutory reserve 6,864,775,853 - - 6,864,775,853 - - - - - - 6,864,775,853
General reserve 155,071,397 - - 155,071,397 - - - - - - 155,071,397
Revaluation reserve against securities 49,443,201 - - 49,443,201 - - - - - - 49,443,201
Revaluation reserve against fixed assets 115,314,704 - - 115,314,704 - - - - - - 115,314,704
Foreign currency translation reserve - - - - - - 1,513,125 81,379,939 13,366,593 - 96,259,657
Surplus in profit and loss account 2,572,596,483 30,109,846 (30,109,846) 2,572,596,483 558,445,206 13,868,652 (24,385,996) 2,484,051,152 87,239,947 (120,234,950) 5,571,580,495
26,765,877,248 30,109,846 (30,109,846) 26,765,877,248 2,758,445,206 13,868,652 11,566,098 2,565,431,091 100,606,540 (2,354,673,918) 29,861,120,917
Minority Interest - - - - 7,523 6,208 - - - - 13,731
Total shareholders' equity 26,765,877,248 30,109,846 (30,109,846) 26,765,877,248 2,758,452,729 13,874,860 11,566,098 2,565,431,091 100,606,540 (2,354,673,918) 29,861,134,648
Total liabilities and shareholders' equity 405,054,211,233 2,402,991,031 (2,398,695,826) 405,058,506,438 8,551,494,665 16,825,737 26,540,391 2,565,431,091 100,606,540 (7,078,370,390) 409,241,034,472
76
Annexure -I
Financial highlights of the Bank
as at and for the year ended 30 September 2021
Currency/
Sl. Particulars 30 September 2021 31 December 2020
percentage
1 Paid up capital BDT 17,008,675,610 16,198,738,680
2 Total capital BDT 38,570,535,266 31,289,951,586
3 Capital surplus/(deficit) BDT 1,791,264,439 (664,881,718)
4 Total assets BDT 405,058,506,438 363,411,767,076
5 Total deposits BDT 326,736,265,433 296,369,024,858
6 Total loan & advances BDT 292,671,425,826 260,650,289,525
7 Total contingent liabilities & commitments BDT 65,726,393,466 50,483,678,851
8 Credit deposit ratio % 82.84 82.42
9 Percentage of classified loan against total loans & advances % 3.93 3.97
10 Profit after tax & provision BDT 1,612,950,668 562,247,536
11 Amount of classified loans BDT 11,499,771,622 10,345,761,856
12 Provision kept against classified loans BDT 2,923,864,788 2,737,576,718
13 Cost of fund % 4.00 5.41
14 Interest earning assets BDT 354,193,952,522 317,877,110,625
15 Non-interest earning assets BDT 50,864,553,916 45,534,656,451
16 Return on Investment (ROI) % 5.66 7.03
17 Return on Assets (ROA) % 0.42 0.17
18 Income from investment BDT 3,112,822,211 3,454,712,181
19 Earnings per share BDT 0.95 0.33
20 Net income per share BDT 0.95 0.33
21 Net Asset Value (NAV) BDT 26,765,877,248 25,216,954,980
22 Net Asset Value (NAV) per share BDT 15.74 14.83
23 Net Operating Cash Flow Per Share (NOCFPS) BDT 0.85 5.69
24 Price earning ratio Times 16.87 45.98
77
Annexure - J
Disclosure of Restructured Loan
as at and for the year ended 30 September 2021
BDT in Million
Down Payment Outstanding Amount Total Provision as at 30
Outstanding as
Type of Date of Due Date of 1st At the time of New/Fresh September 2021 Present
Sl. Name of the Borrower Outstanding as at at 31 December
Loan restructure Required Realized Installment taking NOC Disbursement Status 2020
30 September 2021 Required Maintained
from BB amount after NOC
Power Pac - Mutiara 2nd time 07.04.2018
1 TL (O) N/A N/A 1,833.20 Nil 2,230.88 44.33 44.33 SMA(RST) 2,084.01
KPP Plant Ltd. 01.01.18 (Interest portion)
2nd time 07.04.2018
2 M/s R&R Holdings TL (O)-1 N/A N/A 936.20 Nil 1,136.33 22.58 22.58 SMA(RST) 1,063.03
01.01.18 (Interest portion)
2nd time 07.04.2018
3 M/s R&R Holdings TL (O)-2 N/A N/A 803.90 Nil 977.65 19.43 19.43 SMA(RST) 912.90
01.01.18 (Interest portion)
Total - - 3,573.30 4,344.86 86.33 86.33 4,059.94
78
Annexure- K
Statement of Tax Position
Tax provision in Excess/
Accounting Assessment Tax as per Advance income
Financial (shortage) Remarks
year year assessment tax paid
Statements provision
Balance of provision for up Assessments up to Y2015 (except Y2005 & Y2010) have been completed by
to Y2015 (except Y2005 & 1,344,988,022 - 1,344,988,022 - the Tax Authority and there is no tax liability remained outstanding against
Y2010) related years
Honorable High Court Division of Supreme Court
2005 2006-2007 140,397,922 140,397,922 - Assessment was completed with loss, however, advance tax paid for 2005
amounting to Tk. 90.27 mln was adjusted in subsequent years.
2010 2011-2012 1,454,854,994 1,508,170,344 (53,315,350) 1,385,538,554 Honorable High Court Division of Supreme Court
Subsequently settled in February 2021. Bank has received Tax Clearance
2016 2017-2018 700,000,000 1,030,632,248 (330,632,248) 1,030,632,248 Certificate and Zero Demand Notice. Now we are checking AIT in details
for final adjustment
Subsequently settled in February 2021. Bank has received Tax Clearance
2017 2018-2019 750,000,000 1,361,487,496 (611,487,496) 1,361,487,496 Certificate and Zero Demand Notice. Now we are checking AIT in details
for final adjustment
Bank has received the order from Commissioner of Taxes (Appeals) which
2018 2019-2020 1,080,000,000 1,199,674,275 (119,674,275) 1,069,572,247
are under review of the Management for next course of action.
2019 2020-2021 1,700,000,000 1,699,489,718 510,282 1,402,427,849 Appeal under process
2020 2021-2022 963,000,000 1,190,000,000 (227,000,000) 1,124,700,195 Return submitted
2021 2022-2023 1,888,550,000 1,810,000,000 78,550,000 641,290,511
Total 10,021,790,938 9,799,454,081 222,336,857 8,015,649,100
Less: Stock Div. Y2020 (80,993,694) - - -
Total after Adjustment 9,940,797,244 9,799,454,081 222,336,857 8,015,649,100
79
Annexure-L
INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
Off-shore Banking Unit
Balance Sheet
Particulars Note
USD Taka USD Taka
PROPERTY AND ASSETS
Cash - - - -
Cash in hand (including foreign currency) - - - -
Balance with Bangladesh Bank and its agent Bank(s) (including
foreign currency) - - - -
Balance with other banks and financial institutions 3,317,106 283,612,525 904,854 76,732,600
In Bangladesh 3,317,106 283,612,525 904,854 76,732,600
Outside Bangladesh - - - -
Money at call and on short notice - - - -
Investments - - - -
Government securities - - - -
Other investments - - - -
Loans and advances 3 24,733,993 2,114,756,409 27,059,831 2,294,703,416
Loans, cash credits, overdrafts etc. 3.1 21,041,207 1,799,023,189 24,218,050 2,053,717,248
Bills purchased and discounted 3.2 3,692,786 315,733,220 2,841,781 240,986,168
Fixed assets including premises, furniture and fixtures
Other assets 4 54,060 4,622,095 61,203 5,190,073
Non banking assets - - - -
Total assets 28,105,158 2,402,991,030 28,025,888 2,376,626,090

Liabilities
Borrowing from other banks, financial Institutions and 5 27,702,760 2,368,585,980 27,686,395 2,347,836,793
agents
Deposit and other accounts - - - -
Current deposits and other accounts - - - -
Bills payable - - - -
Savings bank deposits - - - -
Fixed Deposits - - - -
Other liabilities 6 50,236 4,295,205 57,430 4,870,086

Total liabilities 27,752,996 2,372,881,185 27,743,825 2,352,706,879
Capital / Shareholders' equity

Paid up capital - - - -
Statutory reserve - - - -
General Reserve - - - -
Revaluation reserve against securities - - - -
Revaluation reserve against fixed assets - - - -
Surplus in profit and loss account 7 352,161 30,109,846 282,063 23,919,211
Total shareholders' equity 352,161 30,109,846 282,063 23,919,211
Total liabilities and shareholders' equity 28,105,158 2,402,991,030 28,025,888 2,376,626,090
80
INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
Off-shore Banking Unit
Profit and Loss Account
for the 3rd quarter ended 30 September 2021
1 January to 1 January to
Particulars Note 30 September 2021 30 September 2020
USD Taka USD Taka
Interest income 8 949,871 81,214,039 1,093,393 92,759,070

Interest paid on deposits, borrowings etc. 9 625,791 53,505,098 1,168,821 99,158,134
Net interest income 324,080 27,708,941 (75,428) (6,399,064)
Investment Income - - - -
Commission, exchange and brokerage 10 25,328 2,165,537 9,241 784,004
Other operating income 11 2,753 235,368 - -
Total operating income 352,161 30,109,846 (66,187) (5,615,060)
Salaries and allowances - - - -

Rent, taxes, insurance, electricity etc. - - - -
Legal expenses - - - -
Postage, stamp, telecommunication etc. - - - -
Stationery, printing, advertisement etc. - - - -
Managing Director's salary - - - -
Directors' fees - - - -
Auditors' fees - - - -
Charges on loan loss - - - -
Depreciation and repair of bank's assets - - - -
Other expenses - - - -
Total operating expenses - - - -
Profit/(Loss) before provision 352,161 30,109,846 (66,187) (5,615,060)
Provision for loans, investments and other assets
Specific Provision - - - -
General Provision - - - -
Provision for off-balance sheet exposures - - - -
Provision for diminution in value of investments - - - -
Provision for other assets - - - -
Total provision - - - -
Profit/(Loss) before taxes 352,161 30,109,846 (66,187) (5,615,060)
These financial statements should be read in conjunction with the annexed notes.
81
Off-Shore Banking Unit
1 Status of the unit
Off-shore Banking Units of IFIC Bank Limited, governed under the rules and guidelines of Bangladesh Bank. The Bank obtained the Off-
shore Banking Unit permission from Bangladesh Bank vide letter no. BRPD (P-3) 744 (104)/2009-4233 dated 17 November 2009. The
Bank commenced the operation of its Off-shore Banking Unit on 10 May 2010. Presently the Bank has 1 (one) unit in Dhaka. The principal
activity of the unit is to provide all kinds of commercial banking services to its customers through its off-shore Banking Unit in Bangladesh.
2 Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting
The Off-shore Banking Unit maintains its accounting records in USD from which accounts are prepared according to the Banking
Companies Act 1991, International Accounting Standards (IASs), and other applicable directives issued by Bangladesh Bank.
2.2 Foreign currencies transaction and translation to presentation currency

Foreign currency transactions are converted into equivalent USD using the ruling exchange rates on the dates of respective transactions
as per IAS 21: The Effects of Changes in Foreign Exchange Rates.

Particulars Note
USD Taka USD Taka
3 Loans and advances
3.1 Loans, cash credits, overdrafts etc.
Term loan 21,041,207 1,799,023,189 24,218,050 2,053,717,248
21,041,207 1,799,023,189 24,218,050 2,053,717,248
3.2 Bills purchased and discounted
Inside Bangladesh 3,692,786 315,733,220 2,841,781 240,986,168
Outside Bangladesh - - - -
3,692,786 315,733,220 2,841,781 240,986,168
24,733,993 2,114,756,409 27,059,831 2,294,703,416
4 Other assets
Interest receivable on term loan 31,790 2,718,042 46,860 3,973,758
Interest receivable on bills discount 22,270 1,904,053 14,343 1,216,315
54,060 4,622,095 61,203 5,190,073
5 Borrowing from other banks, financial Institutions and its agents
In Bangladesh:
IFIC Bank Limited 25,500,000 2,180,250,000 27,686,395 2,347,836,793
25,500,000 2,180,250,000 27,686,395 2,347,836,793
Outside Bangladesh 2,202,760 188,335,980 - -
27,702,760 2,368,585,980 27,686,395 2,347,836,793
6 Other liabilities
Interest on borrowing from abroad - - - -
Due to Head Office 50,236 4,295,205 57,430 4,870,086
50,236 4,295,205 57,430 4,870,086
7 Surplus in profit and loss account
Opening balance 282,063 23,919,211 422,036 35,830,868
Less: Adjustment/ payment for the year (282,063) (23,919,211) (422,036) (35,830,868)
Add: Addition during the year 352,161 30,109,846 282,063 23,919,211
352,161 30,109,846 282,063 23,919,211
82
1 January to 30 September 2021 1 January to 30 September 2020
Particulars Note
USD Taka USD Taka
8 Interest income
Term Loan 904,528 77,337,177 1,065,956 90,431,454
Bills discount 45,343 3,876,862 27,437 2,327,616
Interest on loans and advances 949,871 81,214,039 1,093,393 92,759,070
9 Interest paid on deposits, borrowings etc.

Interest paid on IFIC Bank Limited 625,791 53,505,098 1,168,821 99,158,134
625,791 53,505,098 1,168,821 99,158,134
10 Commission, exchange and brokerage

Income-Fees & Commission 25,328 2,165,537 9,241 784,004
25,328 2,165,537 9,241 784,004
11 Other operating income

Income-Other Operating 2,753 235,368
2,753 235,368 - -
83
ANNEXURE 3: CREDIT RATING REPORT OF THE ISSUE
75
ANNEXURE 4: DUE DILIGENCE CERTIFICATE OF THE TRUSTEE
76
ffi n{l s-ql'Fr q{rr{ mlE{rR FrfrFu
Gorporate Office
SKS Tower ltzth ftoo4
:
ffi
$p
Sena lhlyan Insurance Gommnu ltil.
(A Concern of Sena Kalyan Sangstha)
7 VIP Road, Mohakhali, Dhaka-1206
PABX : +88-02-55058455-7
Fax :+88-02-55058458
E-mail : info@senakalyanicl.com
Web :www.senakalyanicl.com
|yourTr*t dRirkM"""dl
07 November,202l
puE pruGENcE,cERTrFlcATE 9F THE TR.UST.EE
Choirmon
Bonglodesh Securities ond Exchonge Commission
E-6 / C, Agorgoon, Sher-E-Bonglo Nogor,
Administrotive Areo. Dhoko-'1207.
, r,, ., , ,,
Subjecf: lssuonce of 3'a Non-coAy,g,rry,qre Redegpo!_le Suboi{i4ofed Bond of "lFlC Bank Limited"
worlh BDT 5.000 Millioii,ldrTier;Il..Ctifoifdlioffhe8on!.,ot:,Per Bosel-lll
,,','''.,:., , -.i.,,1
"'
We, the under-noted truqteel,fO,lhe obove-menfi.o.=n,.=Q forthcoming- issue, stote os follows:
on'beholf of the subscribers. hove
exomined the droft lhforrnstion er dciCurnents ond moteriol focts
os relevont to our deCisjon; ond :'::':ir' jir""
ffiti,,-ffre their directors ond
issuer,,
S$6Ef $io+bments concernin g objects of
ll.oets fur:nished by the issuer; -
WE CONFIRM IHAT:], rl
!jili.{:.It+-l11::::rii . l
.'l' ;f).ir,;:i il:!.:-i=rti l. :l

rt:-iiL:i:iii r',r
(o) oll inf ormofion,,,o11d$$b-g-umertKft .the,,iSs e hoVe,'been received ond
by us o
exomined by-,us ond the droft lM, e1 lrust -qn$#rof t :SUbscription Agreemeni
.. tiiliiti": ",:.1.,.1::- .r::Eil
forworded to ihe CQmmisslon hoi:bee'ri led bY-!5,i,:,1 "', '..
(b) we hove olso exomined oll r menh of the ,.q,s, tfi1fip:riie,.ctrorged with the Trust ond
ore sotisfied thot the osse stotus os disclosed in the lM;
(c) while exomining the.'obo,ye tfiicf':'oll the requirements of the
Securities o nd Excho n ge':Cdiflmissionr,{ ,'$'6qUrlti6-s)"'Rules, 202 I hove been complied
with;
(d) we sholl oct os trustee to the issue os mentioned obove os per provisions of the Deed of
Trust to be executed with the issuer ond sholl ossume the duties ond responsibilities os
described in the Deed of Trust ond in the lM;
(e) we sholl olso obide by the Securities ond Exchonge Commission (Debt Securities) Rules,
2021 ond conditions imposed by the Commission in regord to the issue;ond
(f) the obove declorotions ore unequivocol ond irrevocoble.
q*P
^(\
I
Brig Gen Shofique Sholnim, psc (Retd)
Monoging Director & CEO
Seno Kolyon lnsuronce Compony Ltd.
For Trustee

IM IFIC Bank 3rd Sub Bond

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INFORMATION MEMORANDUM

3rd Subordinated Floating Rate Bond of BDT 5,000 Million

Issuer: International Finance Investment and Commerce Bank

Trustee: Sena Kalyan Insurance Company Limited

Total Face Value: Up to BDT 5,000 Million

Face Value of Each Bond is: BDT 10,000,000

Coupon Rate/discount rate and YTM: Floating

Credit Rating status of the Issue:

Mandated Lead Arranger

Each person receiving this Information Memorandum acknowledges that:

STANDARD CHARTERED BANK: LEAD ARRANGER

Md. Maroof Ur Rahman Mazumder Nasreen Rehman

IFIC BANK LIMITED: ISSUER

Dilip Kumar Mandal Muhammad Sami Ul Hoque

SENA KALYAN INSURANCE COMPANY LIMITED: TRUSTEE

Head Office: SKS Tower (12th Floor)

Mr. Md. Maroof ur Rahman Mazumder

IFIC Bank Limited (the “Issuer”), the undersigned, confirms that:

3 Report to the Eligible Investors 8

22 Details of Fees Structure and Expenses 72

Annexure 1: Issue Application as per Schedule A

Annexure 2: Audited Financials as on 30 September 2021

Annexure 3: Credit Rating Report of the Issue

Annexure 4: Due Diligence Certificate of the Trustee

a) Interest Rate Risk:

b) Exchange Rate Risk:

c) Non-repayment Risk (credit risk):

d) Prepayment, call or refunding risk:

k-i) Market Risk:

k-ii) Technology-related Risk:

l) Risk related to potential or existing Government Regulations:

m) Risk related to potential changes in Global or National Policies:

1. Particulars of the Issuer, IFIC Bank Limited

2. Particulars of Issue Manager: Not applicable

3. Particulars of the Issue:

4. Particulars of the Trustee:

(a) Name of the trustee : Sena Kalyan Insurance Company Limited

5. Particulars of the Credit Rating Company:

6. Particulars of originators, if any: Not applicable

7. Particulars of other contractual parties:

International Finance Investment and Commerce Bank

Average of most recent month’s published highest fixed

The Benchmark rate will be fixed by the Trustee semi-annually on

Notwithstanding anything as contained above and anywhere in the

Following an Event of Default

Covenants by the Issuer

Notification of redemption or repayment: 14 (Fourteen) days prior to the Redemption Dates or

Trustee's powers and duties

 Authorized capital: BDT 40,000,000,000 (as of 30 September 2021)

30 September 2021 31 Dec 2020

Paid up capital 17,008,675,610 4.16%

Total Regulatory Capital of IFIC as of 30 September 2021

B. BUSINESS OF THE ISSUER: IFIC BANK LIMITED

Overseas ventures of IFIC include the following:

 Nepal Bangladesh Bank Limited

 MCB Bank Limited

 IFIC Money Transfer (UK) Limited

Executive Committee (EC)

Risk Management Committee

Risk Management Committee

E. PROFILE OF BOARD OF DIRECTORS

Mr. Salman F Rahman MP